Trouble At Walmart – Leaked Emails Reveal Economic Slow-Down, Financial Woes (VIDEO)

Author: February 19, 2013 3:17 pm
Lindsey Janis reports Walmart's impending disaster on ABC News.

Lindsey Janis reports Walmart’s impending disaster on ABC News.

Walmart’s shares fell 2.2% and closed at $69.30 per share on February 18th, amidst much hand-wringing in the corporate offices and on Wall Street. Although a 2.2% may not seem like such a big deal — Walmart’s shares are still up $10.54 from this time last year — they’ve still come down from their high of $76.91 last October. Cameron Geiger, Walmart’s Senior Vice President of Walmart U.S. Replenishment, blames this year’s expiration of the 2% payroll tax cut and delayed tax refunds. Glenn J. Kalnoski reports in MoneyNews that the IRS is running $26 billion behind in processing refunds, thanks to the prolonged fiscal cliff negotiations.

Of course, it doesn’t occur to Walmart and Wall Street’s top dogs that the GOP is directly to blame for these developments causing consumers’ additional economic woes: Republicans are the ones who forced the payroll tax hike and held up the fiscal cliff deal, and hence the IRS’ ability to process tax returns and refunds. In this latest casualty in the economic collision course between Walmart’s celebrated low wages/low prices business model and the GOP’s supply side economic policies, consumers can no longer even afford to buy cheap Chinese slave labor crap at Walmart’s deeply discounted prices. Oh, and 32 straight days of higher gas prices — as reported by Emily Jane Fox on CNN Money — certainly isn’t helping.


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But wait … there’s more bad news from purveyors of “the dismal science.” Kalinoski reports that Michael Englund — an economist from Action Economics — forecasts “zero consumer spending growth during the first quarter as a result of these factors [U.S. government budget cuts, rising gas prices, tax hikes, and delayed refunds].” And in case you’re about to cry “liberal bias,” Action Economics provides award-winning commentary to stock traders … not left-wing journalists. Jay Franco. an economist from the Conference Board adds that “It may take a while for confidence to rebound and consumers to recover from their initial paycheck shock.” He projects that in 2013, a worker making $50,000 per year will experience a $1,000 drop in yearly take-home pay.

Lindsey Janis reports on ABC News:

“Walmart shoppers, they are considered a real important barometer for the health of the U.S. economy, and these emails have already sparked concern on Wall Street about the strength of the recovery.”

Renee Dudley from Bloomberg obtained emails from top Walmart executives. On February 1st, Geiger lamented:

“Have you ever had one of those weeks where your best- prepared plans weren’t good enough to accomplish everything you set out to do? Well, we just had one of those weeks here at Walmart U.S. Where are all the customers? And where’s their money?”

And on February 12th Walmart’s Vice President of Finance and Logistics Jerry Murray warned his fellow executives:

“In case you haven’t seen a sales report these days, February MTD [month-to-date] sales are a total disaster … The worst start to a month I have seen in my 7 years with the company.”

Walmart: Save money. Live crappy. With frowny face.

Here’s the video from ABC News:

 

 


Elisabeth Parker Elisabeth Parker is a writer, Web designer, mom, political junkie, and dilettante. Come visit her at ElisabethParker.Com, “like” her on facebook, “friend” her on facebook, follow her on Twitter, or check out her Pinterest boards. For more Addicting Info articles by Elisabeth, click here.

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8 Comments

  • Walmart same-store year to year sales have been very unsteady for the last five years. Walmart is just another big corporation that bought the government and uses it for what it thinks is their advantage. Our corporate Supreme Court decided Walmart was too big for a class action discrimination lawsuit.

    The Walmart way of lower wages and exporting supplier jobs has completed its way across the nation. Walmart is responsible for their own demise now that their own customers can’t even afford to shop there after every industry has followed Walmart’s business tactics.

  • years ago i read an article about walmarts business model and thought to myself this couldnt be happening in the u.s.and nothing is being said or done.i made myself a party of one not to spend my money their.i’ve darkened there door twice brought a bottle of water from a vending machine and looked around the store when it opened in my neighbor hood.this extreme right wing agenda has legilated this kind of behavior into our system and if we stay home during the midterm elections it will remain this way.

  • The chickens come home to roost. George Washingtion died from bloodletting, so goeth the rest of the nation.

  • The chickens come home to roost. George Washingtion died from bloodletting, so goeth the rest of the nation.

  • Walmart, one of the U.S. biggest employers with some of the lowest wages wonders where the customers are. What irony. And these guys have MBA’s – I guess it shows how truly worthless that diploma is.

  • “Reaganomics” in action! This is the end result of “trickle-down” economics. It does not work. It has never worked. It will never work. I don’t think that the elites in the right wing will ever figure out economics 101: Workers are also consumers. When you strip their buying power to the bone, THEY DON’T BUY ANYTHING!

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