"Wal-Mart Sales Are Worst in 27 Years"

Mainstream news, but worth citing...largest publicly traded company, selling perhaps the broadest range of products to the broadest range of people:

"Wal-Mart Stores Inc. posted its worst monthly same-store sales results in at least 27 years, tallying a 3.5% decline in April due to this year's early Easter as well as generally challenging economic conditions for consumers."

Comments

[Alan Post]

the reuters article on the same subject also notes that spending on groceries in wal-mart stores rose.

less frivolity, more food.

[Ben in Michigan]

In case anyone was wondering if a recession was on the way, I'd say that this about cinches it for me. Everyone has talked for years about consumer spending driving the economy. Maybe they failed to see that the consumer was spending money from a home equity loan or a credit card. And that this latest bubbly economic recovery failed to raise anyone's paychecks or generate many jobs. In other words, perhaps the chickens are coming home to roost.

[auntiegrav]

The question to ask, related to what Ben in Michigan said, is "What products comprise the majority of the loss for WalMart?"
I'm betting that more people are shopping at the grocery aisle and the discount racks, while fewer are in the appliances and computer sections. Kmart used to be the defining factor of a recession: when Kmart was doing well, the economy wasn't. WalMart can be the same measurement tool, but it has to be broken down into the discounted food and basic needs items and the 'value'-added items. The former don't make as much difference to the profits as the latter. People who don't have jobs shop wherever their needs are met for the least money.

[John Doh]

less frivolity, more food

Maybe so on the frivolity,but
here in NY Tri-State area the price of EVERYTHING seems to have gone up 10% over the last 2 years.
More money buying less.Can the people be fooled by the newfangled smaller shopping carts perhaps?
LESS everything.