Walmart Customers Not Doing so Well
Eduardo Castro-Wright, president of U.S. operations, had some interesting comments today:
A “disturbing” trend, Castro-Wright said Wal-Mart for the first time is seeing a paycheck-related spike in sales of baby formula, suggesting consumers are rushing to buy such necessities as soon as they have the cash.
He said credit used as a form of payment at Wal-Mart is falling and that the decline is expected to reach into the double digits this year. Many consumers have “maxed out. Credit card limits don’t allow them to use credit.”
As the economy worsens, Wal-Mart’s customers have increasingly shown signs of living paycheck to paycheck. Wal-Mart’s sales typically surge around pay periods at the beginning and middle of the month. Castro-Wright said that spike has become more pronounced as consumers’ budgets become more stressed.