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May 8, 2008, 7:33 am

Wal-Mart: More shoppers are living paycheck to paycheck

Wal-Mart (WMT) said sales in established stores rose 2.6% from a year ago in April, as shoppers scooped up the chain’s grocery, health and wellness and entertainment offerings. Wal-Mart cited strong sales of flat-panel TVs, video games and gaming systems, even as it warned that consumers are showing signs of being tapped out.

“The economy continues to get tougher and the ‘paycheck cycle’ is more pronounced for customers than in past months,” U.S. stores chief Eduardo Castro-Wright said. “As money gets tighter for them toward the end of the month, sales drop more than we have seen in the past.”

The company said it expects to report sales for the first quarter ended last month of $94 billion, which is above the $92.5 billion analyst estimate. But Wal-Mart said May sales growth will depend on how consumers respond to the government’s fiscal stimulus plan, which has many Americans getting checks this spring. The company said it expects same-store sales to be flat to up 2% for the month. Shares of Wal-Mart, which have risen this year as signs of economic distress have mounted, rose 1% in premarket trading.

Okay, I am guilty as charged, I buy at Wal Mart, I don’t think we as a family could make it otherwise, when gas shot up, I began using a system, you might want to try it….I buy second hand items from tag sales, etc, 80% , then for retail purchases, I alott about 20% trust me, this really works…hope this helps, cause I live very comfortably, my home is beautiful, and nobody knows or really cares that my purchases are not new!!

Posted By Tee from Kansas…………. : May 13, 2008 9:33 am

To Dave Kuntarich, NC:

If you dont buy the stuff, they wont ship it to you!

Do not blame the rest of the world for the ill’s that plague your country. They only give what the US consumer wants. Welcome to Capitalism, the cornerstone of your great economy!

Posted By ananth, bangalore, india : May 12, 2008 3:29 am

I agree with Margaret in Montreal. Without being protectionist, buying local has been a creed for me long before it became trendy.

And that means paying enough so that the producer of the product and the persons who bring it to me can make a reasonable living.

The Canadian flag, union label or fair trade symbol go a very long way to making this process easier.

And do we really need all the crap we are saving so much money on in the first place?

Posted By Zanna from Canada : May 11, 2008 11:56 pm

Your all missing the point. You, not Walmart, is the reason for the decline of domestic manufacturing. Walmart is only giving you what YOU want. Sure you have a right to purchase an item at the cheapest price, but do not overlook the fact that that “cheap” price for the individual, is not the best choice for all citizens or the country.

Posted By Mike Dallas, TX : May 9, 2008 9:56 pm

All of the attacks WalMart(fall apart) are not totally justified. First, American consumers for the least cost. I am a co-owner of a CPA firm pretty good size, and it is expensive to do business in the USA. I do better than most since the great state of Texas had enough forsight( and oil)to not have a state income tax. The obamas and billary’s of the world will tell you eliminate corporate tax loopholes, while their still are very few left since the tax reconciliation act of 1986 it is a drop in the bucket.

It is very expensive to do business in this country. For employees you must pay half of their SS, insurance, training, and a lot of Federal Regs for most industries(OSHA etc). Then they can turn around and take you to court over any little thing. THe young folks entering the workforce today have the mentality that everyone owes them a living. Mommy and Daddy pampered them for 20+ years and the majority are a bunch of lazy bums. Matter of fact in the DFW area due to the economic boom here it is hard to get folks to continually make great money to go out in the oil and gas fields because it is hard work.

States like Michigan need to get over the auto industry and move on to something else. It is impossible in today’s environment to pay a UAW member $50 an hour to put a windshield wiper blade on a buick. The UAW got a ton of workers pink slips because they could not figure out in todays global environment it is cheaper to build the car in Brazil, due to less wages and no union. But the Big 3 are partially to blame since they have all been mismanaged going on 30 years.

The only thing that can be manufactured in the USA from here on out are highly technical large profit margin items, and cars are not any of those.

I know that i am more insulated then a lot of you in this recession but i have been there. When the price of a barrel of oil hit $9 per barrel, it was impossible to get a job in Texas, Oklahoma, or Louisiana.

If the federal and state govs were smart they would eliminate state and fed tax codes. Obama would say that unfairly favors the rich but it would damn sure jolt the economy, plus the founding fathers never intended their to be a fed tax on citizens, remember the tea in Boston Harbor. Eliminate these silly social programs that have not worked in 40+ years. To sustain viable economic growth, the US needs to be a business friendly country again, not blaming the rich whom for the most part worked their butts of to get that way. We don’t need any of these Dems socialist views, hell i gaurantee Obama never had to meet a payroll like i have. He needs to shut up about all business matters, until you meet a payroll you have no business to talk.

Posted By Dan , Dallas TX : May 9, 2008 1:00 am

i’m with ya, matt. walmart can handle the lower prices that other stores can’t. all the other stores carry the exact same stuff but a walmart super center has all the grocery items as well. it saves gas shopping at one place and it saves money that other stores can’t compete with.

Posted By amy, state college, pa : May 8, 2008 3:40 pm

Right on Dave!
I haven’t set foot there in over 5 years.

Matt has a point about EVERYTHING being Made in China, I’ll still make the conscious effort to look for “Made in Canada” or “Made in USA” even if it does cost me 1 or 2$ more.

SHOP LOCAL!

Posted By Margaret in Montreal : May 8, 2008 2:02 pm

hey dave if all these wal-mart defenders had any idea of what they are saying they wouldn’t speak before talking. does anyone have any idea why china products cover the united states. hey people do some home work wal-mart is one of the biggest raesons, liberals are second.

Posted By jeff brunner newark ohio : May 8, 2008 1:45 pm

Hey Dave, have you ever looked at other stores as well? I hate to inform you, but the majority of products in most major retailers are made in China. Everyone picks on Wal-Mart because of how big they are. Look at Meijer, Target, and especially the dollar stores, and you’ll find that most of their stuff is from China.

If you don’t like Wal-Mart, then don’t shop there. I like to save money, so I do, but if I find the same product somewhere else cheaper, I’ll shop there.

Posted By Matt, AH, MI : May 8, 2008 10:41 am

No company has done more to destroy US manufacturing than Wal-Mart. There are now 2 ocean container terminals in China dedicated to handling only Wal-Mart junk destined for our country. It is estimated that Wal-Mart is now shipping 700,000+ TEU’s (trailer equivalent units — think 20 foot ocean containers) from China each year. Try to imagine 350,000 to 500,000 semi trucks (per year) worth of their Chinese made goods lined up on the shoreline of China pointed at the USA and your jobs. Please take your economic stimulus checks to Wal-Mart and buy some of their products. There are a lot of Chinese people wringing their hands, waiting for this boost to their economy. And please dont forget to say a prayer for the Walton family and the top 25 or so highest officers within Wal-Mart during the past 15 years. Lets hope they all made enough money to weather the storm they have steered us into.

Posted By Dave Kuntarich, Apex, North Carolina USA : May 8, 2008 8:48 am
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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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