Thursday, February 28, 2013

Update: As goes Wal*Mart, so goes the country?

Update: A few days ago I had a short post on how Wal*Mart is singing the "Nobody's Spending Blues".  Well, here's a quote from an article I ran across today:
It once was true that as General Motors goes, so goes the U.S. economy. Today that is truer of Wal-Mart, and that's a problem. The political left loves to see the Bentonville Union Bashers suffer a bit, but does Wal-Mart's bad February herald another recession? If so, what would that do for the Obama administration's recovery narrative and credibility?

Original Post:
Let's hope not.  The giant retailer is apparently adjusting its strategy for 2013 as a result of the increase in payroll taxes consumers are experiencing and the continued dismal performance of the US economy.  Factor in the rapidly increasing price of gas -- a phenomena that has mostly been ignored by Obama's mainstream media -- and its easy understand how those in the lower income brackets are taking a hit currently.  Something has to give; Wal*mart thinks it's going to be consumer spending:  From the article:
Retailers are preparing for a triple whammy as the restoration of the payroll tax, surging gas prices, and stagnant employment and wages take a bite out of consumers’ disposable income, leaving them with less cash to spend on clothing, groceries, and eating out.
Read all about it here.
(HT: Drudge Report)