March 10, 2016

IS THIS THE HOPE, OR THE CHANGE? “Walmart’s customers are too broke to shop,” reads a snarky, virtue-signaling headline at Yahoo:

“Walmart is facing an almost perfect storm when it comes to top-line growth,” O’Shea wrote. “Until the health of the lower-to-middle-income consumer improves, Walmart will continue to face macroeconomic headwinds in the US.”

Walmart said last month that it’s expecting virtually no sales growth in the coming fiscal year. The company had previously projected growth of 3% to 4% for the year, but lowered its guidance last month citing the impact of the strengthening US dollar. The company’s share price has lost about 16% of its value over the last 12 months.

Despite its slowing revenue growth, Walmart continues to invest heavily in employee wages and e-commerce in an effort to stay competitive with Amazon.

Well, that’s one way to put it. As Twitchy noted in January, “’Raise the Wage’ activists last year protested Wal-Mart and demanded that the retail giant raise employee pay. Wal-Mart did raise its starting wage, but an ensuing cut in worker hours soon had progressives scratching their heads,” followed by Walmart announcing it was closing over 150 stores.

Which is reminder that even the Gods of the Copybook Headings shop at Walmart.

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