Article

2016-01-15 Economy

Just after the SOTU - Walmart announce closure of 154 stores, 10k out of work

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Posted by Besoeker 2016-01-15 10:01|| || Front Page|| [7 views ] Top

#1 Anxiously awaiting outrage and strong diplomatic protestations from Beijing.

Posted by Besoeker 2016-01-15 10:10|| 2016-01-15 10:10|| Front Page Top

#2 95% of them are in Brazil where the chain has been really struggling.

The others are in the US that are closer than 10 miles to another WallieWorld.

Posted by DarthVader 2016-01-15 10:47|| 2016-01-15 10:47|| Front Page Top

#3 10,000 in the U.S. out of work is not a 'good news' story.

Posted by Besoeker 2016-01-15 10:53|| 2016-01-15 10:53|| Front Page Top

#4 The Walmart/Sam's CEO is a member of bam-bam's "tribe," and something of a piece of work.

She knew this was coming, but delayed the announcement so as to not tarnish the SOTU message of "America now has the strongest most durable economy in the world." (Cleanest dirty shirt?).

Surprised the announcement was not delayed until after midnight tonight.

Posted by Blossom Unains5562 2016-01-15 10:55|| 2016-01-15 10:55|| Front Page Top

#5 Darth, WTF? According to what I've read more than half are in the US, 154 of 269.

Where did you get Brazil?

Posted by AlanC 2016-01-15 11:23|| 2016-01-15 11:23|| Front Page Top

#6 Correction - She is the Sam's Club CEO only.

Never mind...

Posted by Blossom Unains5562 2016-01-15 11:25|| 2016-01-15 11:25|| Front Page Top

#7 Unemployment is down and the markets are growing...for unpaid student visa interns and H1b holders.

Posted by Skidmark 2016-01-15 11:34|| 2016-01-15 11:34|| Front Page Top

#8 ZeroHedge has an interesting analysis.

Posted by Blossom Unains5562 2016-01-15 13:04|| 2016-01-15 13:04|| Front Page Top

#9 The article I read said most are in Brazil. Funny, I can't find it now.

Posted by Deacon Blues 2016-01-15 14:16|| 2016-01-15 14:16|| Front Page Top

#10 [T]he company is closing 115 stores outside the United States. This includes 60 recently-closed, loss-making stores in Brazil, which represents only 5 percent of sales in that market. The remaining 55 stores are primarily small, loss-making stores in other Latin American markets.

Posted by Pappy 2016-01-15 14:47|| 2016-01-15 14:47|| Front Page Top

#11 WalMart also plans to open more branches this year than this announcement states it will be closing. Net result will be that one year from now there will more MORE Walmarts & Sams Clubs open than are now open at the moment. Effect on net employment has not been stated. This is crappy news reporting.

Posted by Anguper Hupomosing9418 2016-01-15 16:09|| 2016-01-15 16:09|| Front Page Top

#12 IMNSHO there are far more retail establishments open than the economy can reasonably be expected to support. The gubmint's ZIRP policy and propping up the banking system are to blame for that. I expect many more retail outlets to close permanently over the next 10 years, regardless of who's in the Oval Office and sits in Congress.

Posted by Anguper Hupomosing9418 2016-01-15 16:12|| 2016-01-15 16:12|| Front Page Top

#13 The DOW is still ridiculously over-priced. I got out of the stock market altogether in 2007, and haven't regretted it one bit.

Posted by Anguper Hupomosing9418 2016-01-15 16:13|| 2016-01-15 16:13|| Front Page Top

#14 This is crappy news reporting

Well... ZeroHedge...

Posted by Pappy 2016-01-15 16:15|| 2016-01-15 16:15|| Front Page Top

#15 WSJ.com did have the decency to include

The retailer will open more than 300 stores globally next year, he said, though Wal-Mart is slowing its new-stores growth in the U.S. where it operates about 4,600 stores.

However WSJ did not give the numbers on new-stores growth, nor did it deign to mention the grand total of Walmart stores the company has closed in its entire history: I see a lot of vacant store fronts scattered all over the USA which once were run as Walmarts.

Posted by Anguper Hupomosing9418 2016-01-15 16:25|| 2016-01-15 16:25|| Front Page Top

#16 ZeroHedge has an interesting analysis.

Zero Hedge pointed out the direct correlation between WalMart's voluntary and celebrated increase of their basic wage to above the minimum, and the subsequent layoff of the 10,000... exactly as predicted by conservatives and mocked by liberals. I'd say a Q.E.D. is in order.

Posted by trailing wife 2016-01-15 17:23|| 2016-01-15 17:23|| Front Page Top

#17 I looked up the ones closing near me, and they were in places like Mamou and Lake Arthur; small towns with declining population bases.

I doubt it's because the Mamou Police Jury went all Bernie Sanders and raised the minimum wage to $ 15.00/hr.

Posted by Thing From Snowy Mountain 2016-01-15 18:09|| 2016-01-15 18:09|| Front Page Top

#18 Also from the SF Gate:

In Oakland, employees and city officials expressed shock, and some speculated that the city’s minimum wage law played a part in the decision to shutter the store there.

Yeah... don't make a profit store goes bye bye. Welcome to economics 101.

Posted by DarthVader 2016-01-15 19:44|| 2016-01-15 19:44|| Front Page Top

#19 I doubt that the Oakland employees and city officials could get through Econ 001, Darth.

Posted by Mullah Richard 2016-01-15 20:40|| 2016-01-15 20:40|| Front Page Top

#20 Thanks TW. You got it...

Posted by Blossom Unains5562 2016-01-15 20:57|| 2016-01-15 20:57|| Front Page Top

#21 You're welcome, dear Blossom Unains5562. It's a topic I've discussed a number of times with people who ought to understand the principle.

But this evening I discussed WalMart with Mr. Wife, my in-house businessman/engineer, who recalled that the company will be opening stores this year as well as closing stores. In fact, they'll be opening a bunch. So I found the same corporate news release in which the closings was announced, wherein I read the following:

Walmart will continue to invest in its future, with plans to open stores worldwide in the coming fiscal year. Domestically, Walmart intends to open 50 to 60 Supercenters and 85 to 95 Neighborhood Markets in Fiscal 2017, which begins Feb. 1. In the same period, Sam’s Club plans to open in seven to 10 new locations. Internationally, Walmart intends to open between 200 and 240 stores during the coming year.

So it looks like the picture is more complicated than originally appeared.

Posted by trailing wife 2016-01-15 22:07|| 2016-01-15 22:07|| Front Page Top

#22 As, indeed, Anguper Hupomosing9418 pointed out with his WSJ quote in #15.

The WalMart news release can be found here.

Posted by trailing wife 2016-01-15 22:16|| 2016-01-15 22:16|| Front Page Top

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