Wal-mart absorbs increased wages, no price increases

[steveh_131]

So why haven't they raised prices?

Because they lowered wages back down! They raised them in one area then lowered them elsewhere. They ate the Big Mac then yakked it up on the sidewalk.

 

[BehindBlueI's]

Because they lowered wages back down! They raised them in one area then lowered them elsewhere. They ate the Big Mac then yakked it up on the sidewalk.

So why don't they raise prices to increase profit? They just decided they are making enough?

 

[HoughMade]

This sounds like occupy Wall Street sort of thinking.

Since it accused the owners of greed despite the fact that they probably pay more taxes than all of their employees combined and despite the fact that they have created jobs for these people who apparently have few marketable skills (why else would the work there?) and implies that the rich are the problem in the country and that the moral poor are the backbone, I'd say more Marx or Lenin, but yeah, more recently OWS.

 

[BehindBlueI's]

This sounds like occupy Wall Street sort of thinking.

Ok. Do you think it's good for the economy or for society for more and more of the wealth to be in fewer and fewer hands? Occupy was to simplistic, but solutions will need to be found.

 

[BehindBlueI's]

Since it accused the owners of greed despite the fact that they probably pay more taxes than all of their employees combined and despite the fact that they have created jobs for these people who apparently have few marketable skills (why else would the work there?) and implies that the rich are the problem in the country and that the moral poor are the backbone, I'd say more Marx or Lenin, but yeah, more recently OWS.

Right. They weren't just born well.

 

[steveh_131]

So why don't they raise prices to increase profit? They just decided they are making enough?

Because raising prices doesn't always increase profit - and in this case, it would not.

Are you arguing with some imaginary guy who thinks that any company can raise prices at any time to make more money?

 

[BehindBlueI's]

Because raising prices doesn't always increase profit - and in this case, it would not.

Are you arguing with some imaginary guy who thinks that any company can raise prices at any time to make more money?

Nope. Arguing with everyone who said raising wages results in increased retail prices.

Real quick, did the layoff equate to the pay raise? Are you arguing that total wages organization wide stayed the same?

 

[BehindBlueI's]

Because raising prices doesn't always increase profit - and in this case, it would not.

Oh, and just to be clear, are you arguing that you can't just raise prices to increase profit but you can just raise prices to cover wage increases?

Profit wouldn't go up because market share would go down. Again, an agreement that even Wal-mart cannot simply dictate market price. Yet somehow if their overhead goes up they now gain that ability? Do tell.

 

[steveh_131]

Nope. Arguing with everyone who said raising wages results in increased retail prices.

You're talking about mandated minimum wages, which is an entirely different animal than a single company voluntarily raising wages.


If you run a McDonalds, for example, you're competing with every other fast food restaurant in the area. If you are the only one to raise your wages, and you try to raise your prices accordingly, you're likely going out of business. On the other hand, if EVERY fast food restaurant is forced to increase wages, then EVERY restaurant will also increase prices without losing any competitive edge - but still ultimately contributing to inflation.

Real quick, did the layoff equate to the pay raise? Are you arguing that total wages organization wide stayed the same?

I don't know the numbers, we'll have to wait until things even out before we'll see the total damage caused by this. Of course, there may be some increase in profits thanks to a potentially improved customer service because of their ability to hire better employees. But again, this benefit would be void if every retailer was forced to pay more, in the form of higher minimum wages.

 

[steveh_131]

Profit wouldn't go up because market share would go down. Again, an agreement that even Wal-mart cannot simply dictate market price. Yet somehow if their overhead goes up they now gain that ability? Do tell.

Only if that overhead goes up across the board in their market sector.

Like increased minimum wages, for example.

 

[HoughMade]

I say we take the money that Walmart paid to its board and top executives and split it up among the rest of their employees.

That $30...a year... will make all the difference....and the company will then shut down because it has no management.

What about the bond holders? take that money....then the company shuts down, but hey the bond holders were rich so it's worth it to punish them and make the 2.2 million employees unemployed.

Oh. but the stockholders. Take their money! And then the company shuts down.....sounds familiar.

 

[GodFearinGunTotin]

Ok. Do you think it's good for the economy or for society for more and more of the wealth to be in fewer and fewer hands? Occupy was to simplistic, but solutions will need to be found.

No I don't. But taking it from those that have it is wrong. Do they own the wealth legally? Did they obtain it illegally? If the answer to those questions are 'yes' and 'no' respectively, then why would we want to go take property rightfully owned away from its owners? How is that moral?

 

[Timjoebillybob]

Right after the Walton family, who's wealth equates to the combined wealth of the bottom 42% of the US, cut back on their take. Anyone who wants to get to their levels of wealth just needs to work harder, or so I've read on INGO. In the mean time we can ask the bottom wage earners to keep kicking in more and more to support other low end wage workers...right?

Why should the Walton family cut back on their take? You do realize that if they took nothing from the company and gave all of their income to the employees it would amount to somewhere around $1500 a year each right? How many companies make more than that per employee?

 

[bwframe]

Walmart to close 269 stores, shut down 'Express' format

Walmart (WMT) will close 269 stores around the world in a strategic move to focus more on its supercenters and e-commerce business, the company said Friday.

The closures include 154 U.S. locations, encompassing Walmart's entire fleet of 102 'Express' format stores, its smallest stores that have been in pilot testing since 2011. Some supercenters, Sam's Club locations and Neighborhood Markets will also close, plus 115 stores in Latin American markets. The closures were decided based on financial performance and how well the locations fit with Walmart's broader strategy, says Greg Hitt, a company spokesman.

 

[GodFearinGunTotin]

I almost posted this story. Probably a pretty good call.

 

[ajeandy]

I hate going into trashmart

 

[SMiller]

FEMA camps here we come...

 

[Hiker1911]

No immediate price increase?

Also, if various product lines (prices) were marked up 1 penny over the next several weeks, can you imagine the impact on future gross profit if thousands of products were affected in this manner for the remainder of 2016? And, do you think every management decision concerning 'future' price increases will be shared with the media?

 

[thej27]

Walmart to close 269 stores, shut down 'Express' format

Walmart (WMT) will close 269 stores around the world in a strategic move to focus more on its supercenters and e-commerce business, the company said Friday.

The closures include 154 U.S. locations, encompassing Walmart's entire fleet of 102 'Express' format stores, its smallest stores that have been in pilot testing since 2011. Some supercenters, Sam's Club locations and Neighborhood Markets will also close, plus 115 stores in Latin American markets. The closures were decided based on financial performance and how well the locations fit with Walmart's broader strategy, says Greg Hitt, a company spokesman.

I work for Walmart. The past few years they talked up the Walmart Express as the next big thing at our meetings. Lately it's about competing with Amazon.

 

[HoughMade]

I work for Walmart. The past few years they talked up the Walmart Express as the next big thing at our meetings. Lately it's about competing with Amazon.

I go shopping at the smallest store that has what I need at not too great a price penalty. It's not a grand philosophical position, it's laziness, but it leaves Walmart out.