Wal-Mart Food Fight (its daily revenues = 2 percent of US GDP! More astonishing numbers)

New York Post ^ | November 18, 2002 | Christopher Byron

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WOULD you like to know what life is going to be like in America more or less a decade from now?

Well, if things keep going the way they have been lately, and if the economy keeps weakening on its present track, then just head for the nearest Wal-Mart and look around. You'll find yourself face to face today with the Tomorrow-land of consumer shopping, and it won't be a pretty sight - though it will be one from which you might make a few bucks, especially if you're able to suck it in and start buying Wal-Mart on the dips.

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• its daily revenues equal an astounding 2 percent of the country's entire gross domestic product.
• its cash-registers now rake in 20 percent of all the profits of America's entire retailing sector.
• it is now generating twice as much in total net profits each quarter as the entire rest of the discount retailing sector combined
• twice as much as all department stores combined
• three times as much as all clothing retailers
• five times as much as all drugstore chains
• more than the home improvement sector
• more than the food sector.
• Wal-Mart's total company-wide food sales now exceed $80 billion, making Wal-Mart by far the country's largest food retailer already.

Absolutely astonishing.

[Gorest Gump]

It is astonishing. However, I shop there frequently. Whenever there is no difference in brand or quality (Campbell's soup bought at Wal-Mart tastes the same as Campbell's soup bought at Kroger), I save money by buying it from Wal-Mart. Whether or not my purchases are best for me in the long run (what will they charge when they have no competition?) I have no idea.

[the gillman@blacklagoon.com]

Who says there's no hope for all you late forties permanently unemployed hi-techies. If you hang on another ten years you can become a Walmart Greeter!

Cheer up!

[egarvue]

We shop at a Wal-Mart supercenter too. Not only are the prices better, its the convienence of one-stop shopping. When you're having to haul around three kids all under the age of four, one stop is a blessing. Ain't capitalism great?

[wideawake]

Problem with these stats:

US GDP in 2001 was approximately $10.082 trillion. One hundredth of that is $100 billion. 2% of GDP is $200 billion.

Walmart's revenues last quarter were approximately $59 billion. That means that Walmart's daily sales were approximately $653 million.

So, in reality, Walmart's annual revenues are about 2.5% of US GDP.

If Walmart did 2% of US GDP daily, then Walmart's annual revenues would be more than 7 times the US economy's total GDP. It's a big company, but it ain't that big.

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As long as Wal-Mart doesn't acquire a military, I guess we're safe for now.

BTW, there are no Wal-Marts where I live, so I've never shopped in one.

[dead]

I assumed he meant daily GDP.

[demsux]

They're GREAT...unless you own a small shop in a small town where they put one of these boxes

[July 4th]

Wal-Mart has morphed from retailing's "company to beat" into the actual environment in which the rest of retailing must now compete.

Some stores have found their own niches, and are doing very well. Take Kohl's stores, for example. They're considered a hybrid, between a discount retailer and a department store, and are able to draw customers from both ends of the spectrum. For the past several years, their growth rate has surpassed any other clothing retailer.

Bottom line: the market will always be there. Wal-Mart will always have shots taken at it. They're not going to take over the world.

[discostu]

This is the part that proves he doesn't know what he's talking about:

...announced its latest quarterly results, unfurling a 23 percent increase, to $1.82 billion, in year-over-year earnings for the third quarter.
These numbers, more appropriate to some software tech stock during the boom 1990s than to a discount retailer in a slumping economy,

Nobody increases profits 23% in a slumping economy except maybe repo-men. If WalMart is doing this good the economy isn't as bad as he thinks. Which comes as no suprise to folk that survived the Carter recession, this "down economy" is the wimpiest economic slump I've seen.

Of course he's addicted to this idea that WalMart is for poor people, which it's not. If you've decided to buy a product should you spend $25 on it or $14 on the exact same thing elsewhere? Add good choice of locations and large selections maximizing your "one stop" potential and THAT'S how WalMart makes it's money.

[wideawake]

Other bad data:

If Walmart takes in 20% of all retailing profit in the US, and Walmart's runrate profit is $6 billion, then the US retailing sector is only taking in $30 billion of profit per year.

Microsoft alone makes a profit of $11 billion a year.

[wideawake]

His wording is pretty vague:

This company is now so big its daily revenues equal an astounding 2 percent of the country's entire gross domestic product

[aruanan]

You'll find yourself face to face today with the Tomorrow-land of consumer shopping, and it won't be a pretty sight -

I thought it was a very pretty sight: lots of food at great prices.

[Gorest Gump]

BTW, there are no Wal-Marts where I live, so I've never shopped in one.

Well, I guess you've never lived. ;>

I have 3 supercenters within 5 miles of home. All opened in the last 2 years. All of the other merchants in the area have dropped their prices, even the Quik Lube. My last oil change was only $19.95, which is slightly less than Wal-Mart.

[Gorest Gump]

As long as Wal-Mart doesn't acquire a military, I guess we're safe for now.

You know, I swear I saw some folks in the back in fatigues....

[ImaGraftedBranch]

Yep, they are great. We save tons of money shopping for name-brand food there. In addition, you can get your ammo there. :)

[FreedomPoster]

I drive a mile past the local Wal-Mart to go to Costco. Costco kicks! I've seen Clark Howard there twice.

[Alberta's Child]

Americans spend more of the family budget on food than on any other single thing . . .

Correction -- Americans spend more of the family budget on taxes than on any other single thing.

[Sir Gawain]

And they treat their employees like crap.

[Alberta's Child]

I can understand why a company like Wal-Mart is such a success, but I'm not the kind of person who would ever shop in a place like that. I despise crowds, so I avoid shopping centers as much as possible -- I prefer to pay slightly more to do business with a local merchant.