As it turns out, Walmart is facing challenges bigger than anyone thought. A second round of store closings was just announced, and the company is saying that half of its stores in one major U.S. city will be permanently shut down because they are losing tens of millions of dollars every year. Many locations are underperforming right now as shoppers complain about double-digit price increases at Walmart and turn to other retailers for “greater” value. The big-box retail chain is also in a complicated financial condition, missing investors’ earnings expectations and reporting growing cash flow problems. The situation has become so alarming that one industry CEO is warning about a flood of bankruptcies in the sector in 2023 as America’s biggest retailers cope with an increasing amount of distress.
Shoppers are noticing that prices at the big-box retailer have continued to rise in 2023 despite inflation numbers cooling down. For several quarters now, Walmart is losing sales and losing shoppers. As previously reported by GOBankingRates, a study from the value investing site ValueWalk found that Walmart grocery prices climbed by 21.5% over the past 12 months.
According to Walmart CFO John David Rainey, shoppers will have to prepare themselves for another year of price increases. In an interview with Reuters, the executive said the world’s biggest retailer might still have to raise prices to deal with higher costs. “We’re assuming that this year is going to be somewhat anomalous… [We’re] still feeling the effects of higher prices,” Rainey said.
However, this may further squeeze the company’s bottom line as more and more customers turn to discount stores. The outlook for Walmart in 2023 has suffered a drastic shift. In January, executives seemed to believe in the retailer’s ability to recoup its 2022 losses and report strong sales growth this year. But those views were shaken, and this week, the big-box store chain just announced another round of closings, citing poor financial performance at several locations.
The stores affected this time are located in DC, Georgia, Florida, Hawaii, Indiana, New Mexico, Texas, Washington, and Wisconsin. The retailer confirmed it will lay off thousands of store employees and hundreds of hundreds of workers at five fulfillment centers across the US.
More worryingly, Walmart is permanently shuttering half of its stores in the city of Chicago. “The simplest explanation is that collectively our Chicago stores have not been profitable since we opened the first one nearly 17 years ago – these stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years,” it revealed.
Walmart’s troubles should alarm everyone in the industry. According to CNBC, due to its massive size and substantial market share, Walmart is considered a barometer for the nation’s economy as a whole. So any trends we’re seeing in Walmart will likely be reflected in your local grocery store as well.
Everything is falling apart faster than anyone predicted, and even the biggest chains are struggling to survive in such a difficult environment. If the biggest retailer in the world is coping with this many challenges, smaller companies will likely experience even more serious problems this year. The retail apocalypse spares no one, and the next chapters of this crisis will chill many people to the core.
Article cross-posted from The Epic Economist.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
Does this have anything to do with the huge increase in shoplifting we see everywhere now. It’s especially bad in bit cities and nobody does anything about it. Or is something else hurting Walmart more? Would have been nice if the article had addressed this obvious question.
The biggest problem for Walmart is they own all their own stores outright, and lying about why the closures is not helping the value of these buildings.
How do you know so much? When I retired I worked briefly at a WM store and their losses thru theft the first year open was approaching 500k. All white area.
Why will you not mention the city that had the losses me thinks you are fibbing.
If I said I worked briefly for 5 Walmarts and they all had huge losses. all bl-ack areas, but I cannot mention which cities. My post would be meaningless.
Wokeism is fatal.
And these corporations usually support Democrates who have caused this mess. Somebody’s getting paid off big time.
woke management gets paid, stock holders will take it up their a . .ss
Walmart’s problem, and the nation’s problem, is Joe Xiden. 81 million votes…sure.
You are right about that. And didn’t they say something like inflation slowed down? Where? I still can’t find items due to supply chain issues. Gas prices have gone up again. This will not stop until we get the real President back in.
Trump 2024 for a third win ( if we survive that long).
Your right this is a ll the fault of Biden and the Democrats. They have totally destroyed the economy. Trump had it running great and then Biden was installed as president and screwed it up in less then two years. And that is a fact.
When you allow the privileged class to rob your stores, the easy way to recover financially is to raise prices for the law keepers. That will work as well as punishing people with good credit on mortgages.
In law-abiding communities, WalMart is doing just fine, Thank You.
Walmarts where I live have no checkers, and not even any bags to put your stuff in. Even when they had checkers, they were few and the lines were long. There are just no reasons to choose Walmart over another store. Walmart is just gross 🤢.
The stores are filthy
The odors are horrendous
They stock during peak shopping hours
They never have enough check out lanes open
They’re “woke”
I agree, my local Walmart apparently dropped their employee dress code months age and now there are purple haired, nose ring and tattooed employees all over the store. Wokeness is promoted by Walmart owners…..so they deserve the result….
The USA would be a better place if Wal*Mart never existed in the first place. If they fail now maybe mom & pop stores by the hundreds of thousands would return all across the land. That would be a great thing.
Maybe walmart should get their heads out of their azses.
But, but.. how can this be? President Biden says, “things are better than ever!”
I’ve been de-facto boycotting Walmart for years.
Their clothing has continually declined in quality. As a tall woman, I need longer sleeves, shirt tails and pants’ lengths. As a mature, active woman, I need pants that start at my waist and provide room in the seat. Basically, I need a dignified and comfortable fit. I also need materials which are thick enough to keep me warm in the winter, and of a quality that will stand up to the washing machine and dryer. Since about the year 2000, the quality of clothes from Walmart has declined every year. Now nothing they offer fits, nor will it last more than about 4 months – tops.
They have continued to treat their employees worse and worse. I find that hard to support. They still have good values in their grocery department and soap. They also have the best variety. Nonetheless, I’ve found myself willing to shop in several other stores, rather than make that one big run to Walmart. It’s a matter of ethics. How can I support a company that treats people so poorly?
So they’re on their way out. OK. I think it would be better for my community if we had several retailers competing for our dollars, rather than Walmart crushing everyone else. I’m ready to see them go, and see if we can get something better in Walmart’s absence.
Clothes that fit and stand the test of time would be nice. Employees who have greater stability and better working conditions would be good too.
Walmart and all big conglomerates need to collapse. They are more dangerous to America’s well being than any foreign adversary. America can’t survive with corporations size of small countries.
regards to what really, truely happening at walmart, the idiot media won’t talk about… it is the HUGE ELEPHANT IN THE ROOM… BUT that is the thing will kill walmart….
The biggest thing I have with Walmart shipping is to slow. Amazon has them beat big time there. Amazon has done a great job with shipping.
Wokemart can now reap the backlash of plandememic gestapo.