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

Thursday, March 10, 2016
By Paul Martin

Mac Slavo
March 9th, 2016
SHTFplan.com

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.

Walmart’s customers are too broke to shop

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.

The Rest…HERE

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