Things are looking tough for our favorite corporate exploiters.
The world's largest retailer, which gets more than half its sales
from groceries, on Thursday gave a disappointing full-year forecast. It
blamed sharp cuts in food stamp benefits and higher payroll taxes that
will hit disposable income for its core customers. Wal-Mart shares fell
2.2 percent in morning trading.
Walmart helped create the low-wage economy and repugican cabal-style
anti-government corporatism that is now, ironically, biting it in its
ass. But there's more to the retailer's problems than austerity cuts.
Fact is, its business model is increasingly an anachronism.
Cold weather and a reduction in food stamp benefits aren't the only
reasons behind Wal-Mart's lowered fourth-quarter forecast.
.
The big-box discounter is in need of a bricks-and-mortar makeover,
analysts said. To resonate with today's shopper, Wal-Mart needs to move
its stores closer to major population centers, shrink the square footage
of its superstores and shutter about 100 underperforming U.S.
locations, they suggest.
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