The writer of this piece is correct in saying that the life line of American economy is at Wal-Mart. With gas prices going up and eggs milk and bread as well. We are trying to tighten are belts. And save some money and maybe be able to afford one more gallon of gas. Even though Wal-Mart is a corporate giant, we still can depend on Wal-Mart helping us save a little bit more money. And making are dollar to go a little further. American???s want to complain that Wal-Mart is outsourcing overseas because it???s cheaper then here. Nevertheless, we are not trying to complete to get Wal-Mart???s business. It is more expensive here then overseas. So, what do we do? Buy American and get less or head to Wal-Mart and get more. If you???re having trouble figuring out what the right thing to do is. Open up your wallet and then your know what to do.
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As Goes Wal-Mart, So Goes the Nation
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"Consumers at all [income] levels have become value-conscious," says Dana Telsey, founder of the Telsey Advisory Group, an independent equity research and consulting firm focused on the consumer sector. "The overall uncertainty of the economic environment is making both consumers and retailers cautious."
Wal-Mart is responding with price reductions and promotions targeted to its most popular products, along with the offer, announced last week, to cash tax rebate checks for free. Though no purchase is required in return, the retailer is clearly betting that consumers will spend all or most of the proceeds there. Data compiled last month on behalf of the company found at least six in 10 Americans expected to use their stimulus checks to cover groceries and other necessities. To encourage them to do so in its stores, Wal-Mart is further discounting household items like shampoo, juice and cereal in the coming weeks. "It's a different time," says Quinn. "Customers are changing their behavior. We've really had to make sure we're competitive."
The retailer is also trying to capitalize on some of the other ways consumers say they are cutting costs: like substituting "staycations" for vacations this year, and entertaining at home instead of going out to movies or restaurants. The company hopes to offset lower sales of indoor furniture, for example, with an increase in sales of patio furniture and outdoor grills.
In the short run, such changes may benefit Wal-Mart a lot more than the overall economy, which is heavily dependent on consumer spending. But by trimming their budgets and seeking out bargains, Americans themselves should be better prepared to weather the downturn until the economy improves.
© 2008
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