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Wal-Mart's Low Prices Mean Big Profits In Crisis (Q3 up 10%, total sales $98.64 billion)

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Amerigo Vespucci Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-13-08 10:50 AM
Original message
Wal-Mart's Low Prices Mean Big Profits In Crisis (Q3 up 10%, total sales $98.64 billion)
Wal-Mart's Low Prices Mean Big Profits In Crisis

http://www.huffingtonpost.com/2008/11/13/walmarts-low-p...



NEW YORK Wal-Mart Stores Inc. reported a 10 percent increase in third-quarter profit Thursday but trimmed its profit outlook because of the troubled global economy and the renewed strength of the dollar.

The world's largest retailer said its renewed focus on low prices was attracting financially squeezed shoppers and that it was pleased with the results of early holiday price promotions.

The Bentonville, Ark.-based retailer said it earned $3.14 billion, or 80 cents per share, in the quarter ended Oct. 31. That's up from $2.86 billion, or 70 cents per share, a year earlier. Earnings from continuing operations were 77 cents per share.

Total sales for the quarter rose 7.4 percent to $98.64 billion from $91.86 billion a year earlier. Analysts surveyed by Thomson Reuters expected earnings of 76 cents per share on sales of $98.28 billion.

Despite economic difficulties around the world, "Wal-Mart has momentum as we move into the fourth quarter," the company's President and CEO Lee Scott said in a pre-recorded call to analysts. "At a time when our customer is feeling the pressure of a tough economy, Wal-Mart's price leadership is more important than ever."

Wal-Mart has been one of the few bright spots in a dismal retailing world, as Americans have switched to cheaper stores and focused on necessities. The trend has only intensified since the financial meltdown in September, with Circuit City Stores Inc. filing for bankruptcy protection this week and rival Best Buy Co. saying "seismic" changes in consumer behavior have created "the most difficult climate" the company has ever seen.

With the right mix of merchandise as well as marketing like its "save money, live better" campaign, Wal-Mart has been able to pull ahead of competitors like Target Corp. Wal-Mart shares have risen 21 percent in the past 52 weeks, while Target's have lost 40 percent of their value and J.C. Penney Co.'s have shed almost 60 percent in the same period.
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Midlodemocrat Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-13-08 10:52 AM
Response to Original message
1. The Walton family has moved up dramatically on the Forbes 400
Taking over Sheldon Adelson's number 3 spot. A spot he's held for years.

I guess more folks are shopping at Walmart than visiting the Las Vegas Sands these days.
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rfranklin Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-13-08 10:53 AM
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2. And no benefits for their workers...
Walmart sucks.
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glowing Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-13-08 10:57 AM
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3. The reality.. is that its cheap and its all under 1 store...
Say your an avg. family in America.. you've got 2.something children... and because of the economy.. you and your husband work 1 or 2 jobs a peice.. you still need to feed, clothe, and shuttle the children around.. When and where do you go for the convenience of getting everything you need.. Walmart.. Super Target.. anything that is super or big.. Its not for the prices.. often times, Walmart and Target are more expensive on less quality clothing than JC Penny's.. but who has extra time to swing by the mall to grab a couple of extra's? Its a time and money thing. No one wants to go there.. they just do. AND now that they're the ONLY store in many towns across America, its the only place to shop.
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Andy823 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-13-08 11:36 AM
Response to Reply #3
5. I agree.
Walmart is only 24 miles from my house, if I want to go to Target, Costco, or any of the other box stores, it is a 60 mile trip. I do make that trip every 6 weeks to take my daughter to the orthodontist, but the rest of the time it just is not worth it to drive that far to shop. I do take the time to check out the sales at the local stores, and I do shop when there when the sales are good, but when there is only one store in town, they pretty much can charge what they want for their products. An example is Best foods mayo. I can save $1.00 a quart by gong to Walmart, and milk is $4.00 or more locally, but I can get it at Walmart for $2.88. It doesn't take long to pay for the trip since I buy for two weeks at a time, sometimes 3 weeks. I find it hard to shop locally when I see them raise prices during apple harvest on the foods the Mexicans buy, and they do it every year. I just don't think it's right to jack up prices because one group of shoppers buy huge amounts of certain products during harvest time.

I do shop at Penny's which is in the same town as Walmart. They have some good sales on clothes that I do think are better than most of Walmarts. I know way to many people that need to save as much as they can to make ends meet each month, without Walmart they would not be able to make it. I know workers at Walmart and some complain, while others are just glad to have a job. I know people who have worked at Target, Penny's, and other stores who have had problems and complain, as well as others who are glad to be working. The other problem is that no matter what store you go to, everything seems to be imported!
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AndyTiedye Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-13-08 11:01 AM
Response to Original message
4. Costco Has Good Prices Too, and Treats their Workers a Lot Better
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KitchenWitch Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-13-08 11:38 AM
Response to Reply #4
6. Not everyone has access to Costco.
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