Wednesday, November 17, 2010

Wal-Mart Slumping: Desperate for NYC

As the NY Times reported yesterday, Wal-Mart stores is going through a rough patch: "The tepid economic recovery does not seem to be extending to Wal-Mart’s customers in the United States. The giant retailer reported Tuesday that sales in its American stores open at least a year, a key measure of retail health, had declined for the sixth consecutive quarter."

Que l├ístima! It couldn't happen to a nicer company-but Wal-Mart's tsuris becomes NYC's problem as well. That's because, declining same store sales compels the corporate predator to seek greener-and virgin-pastures-as News Channel 4 has reported: "Walmart is gearing up for another fight, as they continue to eye possible locations to open its first New York City store. High on the list- for the hot-button discount retailer is the 630,000-square-foot Gateway II shopping center off Jamaica Bay in Brooklyn."

But, if the Walmonster is going through bad times, why should NYC invite them in on a corporate guest worker program? Here's more bad news from the Times: "Still, visits to Wal-Mart’s American stores declined from a year ago, as did the average price paid at checkout, Wal-Mart executives said. “They’re focused on necessities and being practical with how they spend their money,” the company’s chief financial officer, Thomas M. Schoewe, said in a call with reporters. “We still see what we call the paycheck cycle, where you see the spikes in comps the day or two after a payroll check,” or from food-stamp programs, he said. “It’s every bit as pronounced as we’ve seen it.”

Pretty soon we will be gathering a large and diverse coalition out in East New York to rally against Big Wally. The message we will be sending is simple. If you're having problems, don't come here and visit them on New York. Wal-Mart is bad for NYC on a wide range of fronts-and the battle for NY is just beginning.