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Yes, but that generally shouldn't mean reduced sales in nominal amounts but rather inflation adjusted amounts. Notably, the 'low end' retail outlets tend to bo

by jasmer 4y ago

Yes, but that generally shouldn't mean reduced sales in nominal amounts but rather inflation adjusted amounts. Notably, the 'low end' retail outlets tend to boon in rough times. TJMaxx is doing just fine. What Walmart is signalling is not good... but if the Dollar Store is signalling down sales it's really bad. If the Dollar Store is signalling up sales, during a downturn, but Walmart is signalling down, that might actually mean Walmart is becoming a bit more middle class than we might want to think. Which is a whole other story. Note Dollar Tree does seem to be moving consistently forward [1] so this very well might be a shift in spending from Walmart to truly discount places. A quick check for ALDI USA sales (if you can find them) might fill in the blanks of this story. [1] https://www.macrotrends.net/stocks/charts/DLTR/dollar-tree/revenue https://www.macrotrends.net/stocks/charts/DLTR/dollar-tree/r...

coliveira 4y ago
Whatever the reason, this is not a good sign for the US economy. In a growing country, more people should be able to shop on more upscale stores compared to the past. In the US people are now moving to lower and lower scale stores, initially to WallMart and now to dollar stores. It tells that the US consumer is now moving to the lower spectrum of purchasing power.
- jasmer 4y ago
  First, Western economies are cyclical, this is a low-point, so we have to kind of average over time, and we have to account for 'surpluses'. 'Walmart' standard of living is basically magnificent for anyone living in 1980 for example. Almost 'upper class'. It's unthinkable the quality, quantity and amazing expression of goods, selection that you can get in Walmart now, compared to 'average shopper' in 1980. Fish, lobster, sushi, vast array of breads, fruits out of season, innumerable array of packaged foods, toys and sports equipment as far as they eye can see, clothing that costs as much as a coffee. etc. and technologies that we could not have dreamed of. I'm not saying there isn't a problem, I'm just pointing out two areas, the later of which is generally overlooked.

by jasmer 4y ago

coliveira 4y ago

Whatever the reason, this is not a good sign for the US economy. In a growing country, more people should be able to shop on more upscale stores compared to the past. In the US people are now moving to lower and lower scale stores, initially to WallMart and now to dollar stores. It tells that the US consumer is now moving to the lower spectrum of purchasing power.

jasmer 4y ago
First, Western economies are cyclical, this is a low-point, so we have to kind of average over time, and we have to account for 'surpluses'. 'Walmart' standard of living is basically magnificent for anyone living in 1980 for example. Almost 'upper class'. It's unthinkable the quality, quantity and amazing expression of goods, selection that you can get in Walmart now, compared to 'average shopper' in 1980. Fish, lobster, sushi, vast array of breads, fruits out of season, innumerable array of packaged foods, toys and sports equipment as far as they eye can see, clothing that costs as much as a coffee. etc. and technologies that we could not have dreamed of. I'm not saying there isn't a problem, I'm just pointing out two areas, the later of which is generally overlooked.