Walmart Stamping out profits
“What’s up with Walmart?” we hear you ask, and this time you may have a point. The Big Feller, you see, has cut its quarterly profit outlook, predicting growth that will be flat at best, on a triple whammy of confounding variables – the restructuring of its Sam’s Club unit in the US, the closure of its stores in Brazil and China, and last but not least, the travails of its poorer punter. An estimated 20% of Walmart customers, you see, rely on food stamps for their daily bread, and last year the US Government cut the programme by $5billion, with further cuts expected this year. Also at issue is the emergence of competition, from German discounter Aldi, to Amazon which delivers the big box to your doorstep, to the uniquely American institution of dollar stores, enjoying a new popularity in these straitened times.
Comment: Lessons for us back here in the RS of A, no doubt.