Doug Stephens

Wal-Mart Looks to Reverse Same-Store Slide

August 18, 2010

FROM RETAILWIRE:
The good news for Wal-Mart and its investors is the world's largest retailer posted a higher-than-expected profit in the latest quarter. The bad news is that same-store sales fell for the fifth consecutive quarter. What is your assessment of Wal-Mart's performance in the past year or so and what do you expect from the retailer going forward?      [more...]

The bad news for Wal-Mart is that their problems go much deeper than this recession. The simplest way I can think to put it is that their business model is no longer viable or realistic.

The recession only precipitated what would have happened anyway, albeit more quickly. Boomers are spending less (and will continue to do so), there's 15% fewer Gen X to pick up the slack and Gen Y just doesn't like Wal-Mart. Couple that with a credit backlash of biblical proportions and you have a recipe for disaster that a rollback here and a smiley face there won't prevent.

My guess is that Wal Mart, as we currently know it, won't exist in North America in 10-15 years.