Wal – Mart: sales environment still difficult

Kavilanz, P. (2009, November 12), Wal – Mart: sales environment still difficult. From CNN Money News. Retrieved on November 5, 2009. http://money.cnn.com/2009/11/12/news/companies/walmart_earnings/index.htm


Summary:

This article talks about the effect of the economic crisis on the largest retailers such as Wal- Mart stores. Wall- Mart reported its third- quarter profit was approaching to earning 84 cents per share for the same period until Oct. 31, a profit up from the same period a year ago. But the stores’ sales had fallen down affected by difficult selling environment. However, Wal- Mart management worked to reduce expenses to get these earnings. So, experts are expecting that consumer spending will be low in the near future (fourth quarter) this year. According the author, this trend will continue even after the economy rebounds.

Reaction:

In fact, all the world and companies are affected by the huge economic crisis. Also, this crisis affected the consumers and the employees. Then, many people lost their jobs and others have loans to banks and they are unable to repay them. However, a lot of people don’t have enough money to spend for goods and some of them are not sure for the future, so they can’t spend their money as in the past. Wal – Mart Stores have more information about this situation so Wal – Mart and other supermarkets will do anything to reduce expenses. This is the only way to increase profits, I thought Wal – Mart laid off many workers in order to increase earnings per share in addition to reducing costs. According to this article and another, this crisis’ effect will continue into the near future.