Wal-Mart: Our shoppers are 'running out of money'

CNNMoney ^ | 4/27/2011

[Altura Ct.]

NEW YORK (CNNMoney) -- Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday.

"We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact."

Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.

Lately, they're "running out of money" at a faster clip, he said.

Wal-Mart's ready to do battle on prices

"Purchases are really dropping off by the end of the month even more than last year," Duke said. "This end-of-month [purchases] cycle is growing to be a concern.

Wal-Mart (WMT, Fortune 500), which averages 140 million shoppers weekly to its stores in the United States, is considered a barometer of the health of the consumer and the economy.

To that end, Duke said he's not seeing signs of a recovery yet.

With food prices rising, Duke said Wal-Mart is charging customers more for some fresh groceries while reducing prices on other merchandise such as electronics.

Wal-Mart has struggled with seven straight quarters of sales declines in its stores.

[wrench]

....Strange when we shop at walmart, we only worry about how we pay for our purchase.........

Is it strange that I am concerned about how MY tax money is spent? Not to me

[TurkeyLurkey]

Yeah, I saw that... don’t need any more of those...
but I sure would like to see Cheer Free powder form, Ivory liquid, Kirk’s coconut soap, and Keri lotion back on the shelves, just to name a few off the top of my head. Maybe it’s just wierdo stuff.

Yesterday though I went to specifically buy some white-out, the kind in the blue tube that you just shake and draw over the mistake, like a pen. They only carried one brand, only in a bottle or in tape form. I think that’s strange. I even wondered if there was a ban on the pen-types of white out now.

[Batrachian]

"I am 72 years old, on s.s. and have been paying into it for over 50 years...."

You realize, of course, that the dues you paid over 50 years did not go into your own SS retirement account. There's no such thing. Your dues went to current retirees while you where working. Now, your retirement benefits are being paid for by current workers, like me. You'll really be unhappy when the system crashes and taxpayers refuse to be held hostage to this legalized Ponzi scheme.

[floriduh voter]

Free broadband for propaganda!

[terycarl]

You realize, of course, that the dues you paid over 50 years did not go into your own SS retirement account. There's no such thing. Your dues went to current

Of course I realize that, but it was not my idea....the democrats, sometime in the sixties, decided to raid the social security trust and spend the money on their disastrous"war on poverty"......by the way, we lost.. None of that makes any difference at all, FICA is federal "old age security insurance, and as such, must be honored as it was written. We can take a look at SSI, benefits given to youngsters who are "learning disabled" whose parents demand that they stay that way. Disability coverage to people who work at everything but a job, go bowling, play Bingo, drive a new pickup truck....all on your dollar, whose parents are filthy rich. Medicare doctors (I know two) accused of fraud by billing for services not rendered, ordering unnecessary tests, prescribing unnecessary, high cost pharmaceuticals,believe me, our problems are not with honest participants in the program, but with those who would scam the system for their own benefit. The laws should be strengthened to provide VERY long vacations in federal prison for those convicted of stealing from the American people!!!!!

[thomaswalter]

Wal-Mart customers have been stretched to the limit financially, company CEO Mike Duke revealed at a New York event Wednesday. According to Duke, Wal-Mart consumers are “running out of money” as a result of high costs of fuel, food and more. Wal-Mart wants to see people buying again. Here is the proof: Wal-Mart customers are losing too much money, says retailer.

[hoosierham]

Well,I guess it just shows how low on the economic scale I am,because an increase of $7 a day in gas expense DOES affect my life.$140 a month isn’t just a pizza and beer.Nor does incurring a $200 car payment(plus higher insurance ,plus taxes) for a new tiny car that will save me POSSIBLY $120 in gas and be less survivable than my current paid-for car seem like a solution.Especially since I have been through TWO head-on collisions in my life;both times it was completely the other driver’s fault and both times I was in a mid-size vehicle.Might not live through a collision in a pop can on wheels!

[from occupied ga]

VERY long vacations in federal prison for those convicted of stealing from the American people

In which case every welfare recipient, every government employee, and most especially everyone in Congress should go to jail.

[from occupied ga]

Nor does incurring a $200 car payment(plus higher insurance ,plus taxes) for a new tiny car that will save me POSSIBLY $120 in gas and be less survivable than my current paid-for car seem like a solution.

I'm 100% in agreement with you on this. Oddly enough most people can't do the math the way you did and blithly go off and sign on the dotted line and wonder where the money went.

The rest is none of my business, but the last time things were that tight for me was when I was in graduate school paying my tuition and fees and living expenses out of the lousy salary I got for part time teaching assistant.

But you're better off than my friend. I have a friend whom I will call Bill (because that's his name) who whenever he's really depressed about his financial situation goes out and charges an expensive gadget (new tractor, flat screen, etc) to cheer himself up. I could never understand the logic behind that behavior.

[terycarl]

In which case every welfare recipient, every government employee, and most especially everyone in Congress should go to jail.

nope, doesn't work that way....we vote for representatives who "speak for us" and they have adopted standards for welfare recipients, gov't employees, and themselves.....perfectly legal......now, let's hold their feet to the fire....CUT SPENDING....a lot OR WE VOTE YOU OUT OF OFFICE!!!but we won't do it.....daddy always voted democrat so I should too. I just went around this area for the county clerks office allowing those nursing homes to vote in our primary. You would be amazed at some of their comments....some because they were very old and senile but many very intelligent people who had some of the most inane reasons for voting as they did.......made me worry about our republic

[from occupied ga]

nope, doesn't work that way....

REALLY? Jeeze I never knew.

OR WE VOTE YOU OUT OF OFFICE

Not going to happen when 50%+ of the voters are using the power of government to rob the minority of productive americans to the benefit of the indolent majority. When the constitution is ignored, those of us who work for a living rather than vote for a living are slaves to the rest. Just because theft is performed under the color of law doesn't mean it isn't theft.