This Is How Bad The Economy Really Is: “Walmart Customers Are Too Broke To Shop”


You may find that the below report is, as President Obama might suggest, once again “peddling fiction.”

But for the average American, we can assure you that the economic recession is a very real situation.

Walmart, which made its billions serving low to middle income Americans, is struggling and it’s because their core customer base is too broke to shop. As Michael Snyder recently pointed out, they are just one of many domestic retailers laying off workers amid falling store sales. But they are certainly the biggest and baddest of the retailers out there. If they are having problems it should be a big red warning sign that despite mainstream cheerleaders telling us not to panic because the economy is still in good shape, we are in for some rough times ahead – in fact, the rough times are a reality right here and now.

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Walmart’s customers are too broke to shop

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Walmart is facing a “perfect storm” that’s hurting its sales growth, according to Moody’s.

The company’s core customers are struggling with flat income levels, and savings from lower fuel prices aren’t translating into more retail spending, Moody’s vice president, Charles O’Shea, wrote in a note to clients on Wednesday.

The business is also under pressure from deflation in key product categories, such as food, and the effects of the strong dollar abroad.

“Walmart is facing an almost perfect storm when it comes to top-line growth,” O’Shea wrote. “Until the health of the lower-to-middle-income consumer improves, Walmart will continue to face macroeconomic headwinds in the US.”

Walmart said last month that it’s expecting virtually no sales growth in the coming fiscal year.

Source: Business Insider via Yahoo

The entirety of the growth story being disseminated to the American public is being revealed, almost daily, for the sham it really is.

Stock markets may have recently rocketed back up with many an analyst suggesting they are back on track to go to new highs. But when you consider that one of the lowest price retailers in the country can’t increase or even maintain their sales, then it suggests that something has to give.

As Brandon Smith warned this week, we are experiencing the most unstable economic conditions possible and coming central bank action (or inaction) may well lead to another leg down in global stock markets.

Regardless of what stock markets do going forward, to the average person trying to put food and clothing in their Walmart grocery basket it doesn’t really matter whether the indexes are lighting up red or green.

For them, the collapse isn’t some future event.

It is right now.

Article reposted with permission from SHTF Plan

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