Wal-Mart Stores Inc. (NYSE: WMT) blew past February same-store sales expectations. In fact, it didn't just blow by them -- it doubled them. With other retailers reeling from the recession, Wal-Mart continues expanding its retail sales footprint by taking sales from money-weary consumer wallets in addition to stealing market share from the competition.
Most likely, millions of consumers are "trading down" to Wal-Mart for their everyday shopping needs: from groceries to tires to clothes, and no doubt much more. Wal-Mart U.S. sales chief Eduardo Castro-Wright said "We believe falling gas prices significantly boosted household disposable income in February and therefore allowed for both more trips and more spending towards discretionary categories." Only someone from Wal-Mart could feel comfortable stating that, right? Every other retailer is in the dumps.
In an odd and probably unexpected way, Wal-Mart's "low prices" motif is the one area that is saving the company from the depths of the recession. Although the world's largest retailer started straying from the "Save Money. Live Better" corporate slogan as far back as 2007, keeping its focus on providing value prices at all costs is what has keep the retailer top-of-mind with a renewed, price-obsessed consumer.
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Reader Comments (Page 1 of 1)
3-07-2009 @ 4:58PM
Barb said...
Too bad WalMart's prices ARE NOT LOWER if people would really pay attention!
WalMart have always been a ruthless, predatory company with the intention of monopolizing many markets, driving many other businesses out of business.
3-08-2009 @ 12:10AM
Iridium said...
Like many people I have started buying groceries at Walmart. I know that they are subsidising prices to drive gorcery chains out of business so they can just monopolize the market and then drive prices sky high.
But still when Giant Eagle charges $4.59 for a box of corn flakes that Walmart sells for $2.75 I say screw Giant Eagle. In fact they are worse than Walmart. They are a predatory store that puts all mom and pop stores out of business therefore driving the costs of the most base essential, food, sky high.
If I'm going to buy things from an evil monopolozing corporation I might as well buy from the one that gives me the best deal.
We're already all going to be working for the government or Walmart when this thing is all over so why keep fighting. We'll have government worker class, Walmart worker class, and the huge government moocher class that we all will pay for through our 75% tax rate.
3-08-2009 @ 7:00AM
martinar4200 said...
Walmart has better cleaning product prices everyday as well as most groceries, you can go to Walmart and bring your local flyer with the items on sale this week and Walmart will give you the same price....annoying to others in line but you do whatever it takes to make the dollar last longer, you can also split your grocery list by sales this week at your local grocery store. I have not seen a difference between the local store and walmart on meats and cold cuts