Attitudes: Retailers

The rhetoric over allowing foreign direct investment in India is reminiscent of the rhetoric that would have occurred in the United States 30 years ago had Walmart’s critics knew then what they profess to know now.

Chelmsford, Mass. -- The Kronos Retail Labor Index edged up to 4.2% in June from a reading of 4.1% in May. The June reading reflected sharp declines in both applications and hiring. (The index is defined as the ratio of hires to applications within a given month, expressed as a percentage. A level of 3.0% means that for every 100 applications received, three hires occurred.)

Washington, D.C. -- A report issued Thursday by the Labor Department showed that applications for jobless benefits fell 14,000 in the week ended June 30, to 374,000.

The news eased some concern that the labor market is faltering further.

“Before today it was pretty clear the labor market had softened over the past few months,” Daniel Silver, an economist at JPMorgan Chase & Co., told Bloomberg. “Today’s reports show a little bright spot.”

 

Walmart observed its 50th anniversary in fine fashion this week as its share price hit an all-time high, even as the company faced familiar charges from vocal critics.

Walmart shares closed Tuesday at an all time high of $70.75, nearly 18% above the $59.97 level where they began the year and more than 46% above the 52-week low price of $48.31 seen late last summer. The move is nothing short of remarkable considering an investment in Walmart was dead money for the past dozen years as shares traded for a little more than $69 back in December 1999.

Minneapolis -- A just-released report from the Wall Street Journal said that Best Buy founder Richard Schulze, who resigned his chairman of the board seat earlier this month, may be looking into buying out the company.

Schulze is said to be working with bankers from Credit Suisse. At the time of his resignation as chairman, he owned approximately 20% of the company.
 

Houston -- On average, Hispanics visit convenience stores more frequently on a monthly basis compared to non-Hispanics, according to a recently released report by The NPD Group. The report, entitled The Hispanic Convenience Store Shopper, finds that Hispanics overall made almost two more visits a month than non-Hispanics to major oil chain c-stores, and nearly one more visit over a 30-day period to traditional c-stores than non-Hispanics.

The purchasing power of Walmart shoppers is on the rise as gas prices come down and the improved spending outlook has the company’s share price setting new highs. What’s there to worry about?

Plenty, according to a survey of top executives conducted by the Business Roundtable, an organization that represents companies who combined employ more than 14 million people and generate $6 trillion in annual sales. Member companies include the likes of Walmart, General Electric, AT&T, ExxonMobil and American Express.

New York -- School is just ending in some areas of the Northeast, and already the first back-to-school shopping survey has been released. The survey, by online shopping site PriceGrabber, reveals that nearly half (46%) of consumers are planning to spend more this back-to-school shopping season than in 2011. In comparison, only 13% of shoppers planned to spend more last year, and this data was reflected in an overall disappointing back-to-school season for retailers in 2011.

Washington, D.C. -- The number of retailers that fell victim to organized retail crime groups increased in the past, according to the National Retail Federation’s Organized Retail Crime Survey.

Of the 125 retail companies surveyed for NRF’s eighth annual survey, a record-setting (96%) said their company has been the victim of organized retail crime in the past year, up from 94.5% last year. Another 87.7% said ORC activity in the United States has grown over the past three years.

EDLP (every day low price) and EDLC (every day low cost) are the most familiar acronyms at Walmart, but FCPA (Foreign Corrupt Practices Act) is giving them a run for their money these days.