Tag Archives: walmart

Business/Economics, International, U.S.

What Economic Recovery: WalMart profits down, again, don’t blame the U.S. consumer, blame inflation

WalMart Stores Inc., the world’s largest retailer, saw its 3rd quarter profits fall below what they expected.  They blame price cutting in an effort to boost overall sales.

WalMart says that compared to the same time last year (3rd quarter, ending October 31), their net income was down 2.9%.  The lower prices did increase overall sales, by 8.2%, but WalMart had cut their prices below what it was actually costing them, which explains the drop in net income.

WalMart officials claim they will continue to keep prices low, despite their suppliers raising their prices (inflation).  They also admit they expect their 4th quarter net revenues to be down as a result, Merry X-mas!

Business/Economics, International, U.S.

Corporate Incompetence: WalMart refuses to pay rent in China, since 2002, gets shut down for selling bad meat. Think your U.S. WalMart stores are bad?

WalMart is in trouble in China, because it hasn’t paid rent since 2002, and it lies about what it sells.

According to Chinese media, in 2002 WalMart signed a 15 year lease contract with the Wanguo Shopping Plaza in the northeastern coastal city of Dalian.  Problems occurred with the timely development of the property, and WalMart decided to move across the street.  The problem is that they signed a 15 year contract.

Wanguo Shopping Plaza has sued WalMart for back due rent.  Chinese courts have ruled that the lease contract is still binding.

WalMart had claimed that Wanguo Shopping Plaza lost its business license, and that the contract was terminated in 2007.  WalMart also claimed they paid about two years worth of rent.  The courts found that Wanguo Shopping Plaza never lost its license, there is no evidence the contract was terminated, and that WalMart paid a little more than one year of rent.

This is just the latest in bad things happening to WalMart in China.  In October, 13 Wal-Mart stores were shut down for 15 days for selling incorrectly labelled pork products.  WalMart had previously been penalized 21 times since 2006 for false advertising and selling expired food!

Business/Economics, U.S.

North Dakota: Proof that fast oil money destroys Society, can you say Hyper Inflation?

“At first, we were excited about the prospect of bringing in new people and money … but it slammed us so hard, in such a little time that a lot of locals now are kind of resentful. Now we want our town back.”-Deone Lawlar, a 57 year old native of Watford City

North Dakota is viewed as an economic bright spot in the U.S. economy,  because oil companies have recently opened up their capped oil wells, and are pumping like mad.  At first the natives welcomed the money, but not anymore.  With the oil boom not only does fast money come in, but so do hundreds of thousands of job seekers, and North Dakota just isn’t ready.

The result is hyper inflation.  It’s hitting hard right now in the housing sector, specifically rents.  According to CNN: “One bedroom apartments can run around $1,500 a month, while two to three bedroom apartments are often around $3,000.” (Holy crap, I used to live there, and I thought about moving back?)

“People are getting greedy, and we’re losing people who have lived here their whole lives.  It’s hard to make ends meet, especially with two little kids.  How does a nursing home keep up with the oil fields?”-Kristen Pallacheck, Bethel Lutheran Nursing Home, Williston (I used to live in Williston and I can tell you the town was first destroyed by the super WalMart, now after recovering it’s being done in by hyper inflation no thanks to the oil boom)

The oil industry is also destroying the infrastructure; thousands of big rigs and heavy equipment are tearing up roads that were not designed for such loads: “I drive 15 miles to work everyday with my two children and we have about at least two to three near car accidents a week.  The traffic is horrible and our road infrastructure was not ready for the hundreds of oil field trucks that tear it up.  This week alone, there were four semi truck accidents in four days.”-Michelle Falcon-Nelson, who lives in Williston

According to the Williston Police Department, accidents jumped 30%, and traffic misdemeanors increased 30% from last year.  Also, theft, violence, abduction, sex crimes, domestic abuse, has tripled, with 16,495 reports of criminal activities in Williston last year.  This doesn’t sound like the Williston I lived in, back in the middle of the 1970s!  Even with the boom in jobs, and crime, the Williston Police Department still has only 22 officers!

Speaking of the super WalMart that destroyed Williston back in the 1990s, job seekers have turned the parking lot into a campground.  In the CNNMoney video many of those working are making as much as $25.00 per hour, but because there just isn’t enough homes, or apartments, they’re still living in their cars and trucks.  One man said it wasn’t worth it and was leaving.

The oil boom isn’t helping old timers keep their homes either: “I was talking to myself this morning, and I thought, ‘How am I gonna’ feel when I have to shut this door? I sold my house and have to be out by the first of November, and how is it gonna’ feel to walk out of that door?'”-Wanda Goetz, lived in Williston for 61 years

Many wish the oil boom never came: “While the majority of us appreciate the additional revenue the energy industry brings to our community, the problem for a lot of us is that it’s not just our community anymore. We liked it better when it was ‘the middle of nowhere’.”-David Rolfson, lifelong Watford City resident

 

 

Business/Economics, U.S.

What Economic Recovery? WalMart says the economy still sucks, 9th straight quarterly decline in sales, blames you!

August 16, WalMart reporting their sales have dropped for the 9th straight quarter!  And that’s with higher sales than the same time last year!

WalMart blames us shoppers!  Just like most of Corporte America, WalMart says we shoppers aren’t doing our job spending money we don’t have!

To be fair, WalMart execs realize the bad economy has something to do with us shoppers not spending money: “We remain concerned about the economic pressure on our customers and the uncertain impact it can have on their shopping behavior.”-Bill Simon, CEO

Bill Simon’s statement also shows ignorance when he says a bad economy has an “uncertain impact” on shopping.  Hello, mister Simon, bad economy means no money, no money means a no shoppin’ ina you store!

This past quarter includes the coveted Back to School sales.  Back to School sales are the second most important for retailers, after the November/December holiday season.  Guess what, their Back to School sales sucked!

 

 

 

Business/Economics, U.S.

Who the Government works for: Supreme Court screws 1.5 million Walmart employees

The United States Supreme Court stopped a class action lawsuit against Walmart.  A sexual discrimination claim could have affected 1.5 million employees.

In a 5 to 4 ruling the Supreme Court ruled there was not enough evidence to proceed with a lawsuit.  Originally Walmart was faced with thousands of smaller lawsuits, but lower courts agreed to merge the claims into one big class action lawsuit.

The main evidence of discrimination against women is the fact that 70% of Walmart hourly paid employees are women, yet less than 1/3 of salaried management positions are held by women.

Justice Ruth Ginsburg offered encouragement to the plaintiffs: “Walmart’s delegation of discretion over pay and promotions is a policy uniform throughout all stores…” and that plaintiffs should work to provide overwhelming proof of such.

Early reports said the Supreme Court voted against the lawsuit because chances were good Walmart would lose, and it would cost Walmart tens of millions in settlements.  Walmart has a track record of losing lawsuits, not just in the United States, but around the world.

In the words of Telly Savalis: “Who loves ya baby?”  It’s not your government that’s for sure.

Business/Economics, International

Argentina warns South Africa: WalMart will destroy your economy

“WalMart does not take ownership of the goods until a product is sold.”-Sofia Scasserra, FAECYS

At a labor conference in South Africa, the Argentine Federation of Commerce and Service Workers ( FAECYS ) warned of allowing WalMart to set up shop.  The warning wasn’t about labor issues, but supply issues.  They claim that since WalMart was allowed to operate in Argentina, the affects on business supply has almost destroyed the business middle class.

In Argentina WalMart operates a “spot sale” deal with its suppliers.  Basically WalMart doesn’t pay anything for the products it stocks, until they sell.  On top of that, WalMart takes three months to pay suppliers.

Another trick WalMart plays; it ships its own products in from China.  First the the products go to Brazil, then Argentina, thus avoiding tariffs.

In the case of home appliances is was discovered that WalMart forced suppliers to sell below their cost, and even give them to WalMart for free.

The result is that Argentine suppliers are going out of business.  And the result of that, is that small manufacturers in Argentina are going out of business as well.

 

Business/Economics, International

WalMart business down in U.S., but booming down south of the border

“Our expansion plan will continue to support the socioeconomic development of the Brazilian population. The focus in formats aimed at the emerging middle class will be even stronger in 2011.”-Marcos Samaha, president of WalMart Brazil

Recently WalMart officials expressed their concerns for the poor U.S. retail market.  They blame inflation and lack of jobs.  But, WalMart is spending big money in Brazil, ’cause the economy is boomin’ there.

Brazil is one of the money making members of BRICS (Brazil, Russia, India, China & South Africa).

WalMart is going to open 80 new stores in Brazil, and spend R$ 1.2 billion in the next year (R$ = Real, the Brazilian money).   In the past five years, WalMart has already invested R$ 6 billion, constructing 177 stores and creating 25,000 jobs in Brazil.

Business/Economics, U.S.

WalMart brings back guns

WalMart is going to sell guns again.  It realized that part of its declining sales is because it stopped selling guns in about 2,000 stores back in 2006.   Here in Idaho WalMart never stopped selling guns.

The move back to selling guns comes after seven straight quarterly losses for WalMart.

Selling guns is good for the U.S. economy, WalMart officials say most of the guns they sell are made in the U.S.

 

Business/Economics, U.S.

WalMart says; What Economic Recovery?

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

WalMart executives are doubting claims of an economic recovery, because their sales are down.

Most WalMart shoppers are low income workers who live paycheck to paycheck.  CEO Mike Duke said because of inflation (which official government agencies deny is happening) their customers are running out of money, faster than ever.

Duke admitted that WalMart had to raise prices on produce, but tried to compensate by lowering prices on electronics, but you can’t eat electronics.

WalMart officials are now going to try to lower all their prices, in the hopes it might boost their falling sales.

 

Idaho, Technology

Plastic Grocery Bags, Recycle Them!

Ok, I was watching a local East Idaho TV news program. They ran a national story about getting sick from reusable grocery bags. What got me was in their intro to the story they said that plastic grocery bags just ended up in the landfill. Well not if you recycle them!

When plastic grocery bags first went into use one of the main selling points is that they are recyclable, and therefore will not fill up landfills. The reason they end up in your local dump is because shoppers are not bringing them back to the stores to be recycled.

The Walmart in Chubbuck has bins for dropping off your old plastic grocery bags. So does the Fred Meyer in Pocatello. I believe you can recycle them at your local WINCO. If you’re not sure go ask someone at the Customer Service counter at your favorite store. Just make sure your bags aren’t covered in schmutz.

Why spend money on reusable grocery bags, that they now say may be germ factories, when you can use free plastic grocery bags THAT ARE 100% RECYCLABLE? Please don’t throw them in the trash!

And guess what, it’s not just plastic grocery bags you can recycle. Bread bags, cereal box liner bags & more. Here’s a website for more info on plastic bag recycling: www.plasticbagrecycling.org