I am not surprised!
Given the economic headwinds, one would think that a retailer catering to lower-end consumers would be doubly slammed. As the subprime-mortage mess shows, people at the bottom of the income ladder are struggling. And as for the retail sector generally, don't ask.
Retail sales have been sluggish in recent months, and national chains are shutting down stores by the dozen. From Nordstrom down to Target, fourth-quarter profits have been disappointing.
Which brings us to the mystery of Wal-Mart Stores. The nation's largest retailer, which caters to working-class customers, seems to have something of a sweet spot.
The stock closed Wednesday at $51.43, its highest close since March 2005. Amid the market turbulence of the last six months, Wal-Mart's stock has risen nicely and has pasted the Standard & Poor's Retail Index.
Wal-Mart's stock makes an excellent proxy for the health of the working-class consumer. So how can it be that Wal-Mart's stock is outperforming its tonier, trendier rivals?
Retail sales have been sluggish in recent months, and national chains are shutting down stores by the dozen. From Nordstrom down to Target, fourth-quarter profits have been disappointing.
Which brings us to the mystery of Wal-Mart Stores. The nation's largest retailer, which caters to working-class customers, seems to have something of a sweet spot.
The stock closed Wednesday at $51.43, its highest close since March 2005. Amid the market turbulence of the last six months, Wal-Mart's stock has risen nicely and has pasted the Standard & Poor's Retail Index.
Wal-Mart's stock makes an excellent proxy for the health of the working-class consumer. So how can it be that Wal-Mart's stock is outperforming its tonier, trendier rivals?
2 comments:
it might have helped them that I just spent over $300 there... :)
Gene, I know your going through a tough week right now, just wanted to let you know we are praying that it goes by quick and maybe you can find some healing and closure soon.
Keeping you at the top of our list~ The Crabs
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