Posted on 10/17/2015 7:28:54 PM PDT by SeekAndFind
Wal-Mart's second profit warning in two months should be a wake-up call for the political left. If America's largest private employer is struggling with its own pay increases, how will other businesses cope with even larger minimum-wage hikes?
Long the scourge of progressives for its relatively low wages, Wal-Mart (NYSE:WMT) announced early this year that it would unilaterally boost its own base wage, first to $9 an hour this past April and to $10 by February 2016.
"People have known that $10 was coming for a while," Wal-Mart CEO Doug McMillon told CNBC's Jim Cramer on Wednesday. "This news today was just we quantified it for everybody."
Wal-Mart's stock price promptly suffered its sharpest one-day sell-off in a quarter century, diving 10%. Shares kept falling, ending the week down 11.7%.
The stunning hit to profitability for the nation's biggest retailer raises serious questions about the Democrats' economic agenda to raise the minimum wage to $12 or $15 an hour, while asking low-wage employers to provide their workers with health insurance and paid sick leave. Wal-Mart Sees Big Earnings Slide Taken together with August's announcement of a 7% to 13% drop in earnings per share in the current fiscal year, Wal-Mart's latest warning of a further 6% to 12% EPS decline next year — even as it plans to cut share count with a new $20 billion stock buyback — points to a dramatic drop in profitability.
(Excerpt) Read more at news.investors.com ...
Remember that Hillary was on the Walmart Board until the 1992 election. They provided Bill with funds and transportation during the primary.
I suppose the natural thing to do is raise prices, but then they’d probably lose revenue because low prices is the only conceivable reason people shop there.
What gives any government the right to impose a “minimum wage” on private business?
The right mimimum wage: http://www.nytimes.com/1987/01/14/opinion/the-right-minimum-wage-0.00.html
What happened to the New York Times?
It took just a little over one generation for the paper to go all socialist.
..... I'm sure it means something ..... but .... never mind .... get out there and spend the money you don't have!!!
Walmart already has the market share and their prices are low enough that they could raise them a bit without affecting much. They will always have the lowest prices based on bulk purchasing and being first in line for every product.
The part that should worry folks, is that the service industry is where the jobs are at these days.
You start loosing the big box stores and what is left?
Massing amounts of manufacturing has been moved offshore.
A lot of support functions are now handled overseas.
Now the big box stores are in trouble?
Yikes. I guess we still have too many people working for a living.
I remember that.
Idiot liberals believe that there will be no unintended consequences to their socialist policies. They don’t believe that raising the minimum wage to $25/hr will do anything negative.
And hopefully less to go belly up. This rag is a disgrace to any society.
Liberals can’t be responsible for every under capitalized business in America! Hillary Clinton lectured us loud and clear on this matter.
Amazon.
Walmart supported Obamacare (got a subsidy), and got giddy promoting Mooch’s “healthy foods.” Anything they sell, can be bought somewhere else at the same price or less. The People of Walmart internet and email photos speak volumes about their shoppers.
Liberals aren’t in the least bit worried. As Charles Payne exclaimed, ‘Progressive’ policies are constructed to be punitive.
Walmart’s profit margin is of no concern to them as business only exist for the benefit of the workers. Since Wages reflect the workers share of the profits there should be NO profits.
In the near future, businesses will be owned by the workers (with government funding the takeover, Democratically, of course.
“I suppose the natural thing to do is raise prices, but then they’d probably lose revenue because low prices is the only conceivable reason people shop there.”
We have one of Walmart’s “Neighborhood Markets.”
This is a medium sized grocery, plus pharmacy and was initially open 24 hours, but now is 6 am to midnight.
It has several competitors, both traditional supermarkets, plus Trader Joe’s, Sprouts, etc.
It is tops for convenience.
If all humans were required to pass Financial Accounting 101 there would be no socialists/communists.
Amazon is changing the retail market without a doubt and their market share will continue to grow. However, it is not a monolithic retail outlet - it’s a cooperative of sellers and Amazon get’s their cut for allowing them to the table. Low overhead for the sellers, but I rarely see the “Amazon” clientele at Walmart.
We primarily shop at Amazon, Costco, and our local grocery store. I am on a first name basis with both our UPS drivers and they know my dog’s name. She does not even get that excited when they come up our long driveway - just comes over to get her dog biscuit.
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