Posted on 11/18/2002 2:28:09 PM PST by dead
Edited on 05/26/2004 5:10:27 PM PDT by Jim Robinson. [history]
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.
(Excerpt) Read more at nypost.com ...
- 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.
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.
BTW, there are no Wal-Marts where I live, so I've never shopped in one.
...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.
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.
This company is now so big its daily revenues equal an astounding 2 percent of the country's entire gross domestic product
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.
You know, I swear I saw some folks in the back in fatigues....
Correction -- Americans spend more of the family budget on taxes than on any other single thing.
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