Is Walmart next Kmart?

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Is walmart just the next kmart just another retailer that was thought to be invincible that is on a slow trajectory to death same store sales flat are they about to go negative they have competition from everywhere amazon dollar stores food stores that all eating their lunch let’s talk about this is walmart just the next kmart just another invincible retailer that

Thought could never go down could never go bankrupt nothing bad could ever happen to them they have so much in profits so much revenue so much power of some of these stores are they just going to be another name that is forgotten about a few decades from now well how did we get to this point so right now walmart is looking at flat same store sales in the united

States they’ve had trouble growing in the united states for well over a decade and that’s because they started in the 50s and 60s and they built a lot of stores and they already had so much business that you get to a certain point where it’s hard to grow and on top of that they’re getting so much competition from three specific ways the first being amazon we all

Know about amazon amazon eaten huge amounts of market share away from them amazon’s revenue is growing 17 20 percent a year and on the general merchandise side is where they’re really getting hammered so i’m talking about things like mmm a new coffee maker a new vacuum a new trash can things like that that you used to automatically go to walmart oh i’m gonna go

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To walmart for that kind of stuff now a lot of people they just go on amazon and they just order poopoo i know i just bought an expresso maker a few weeks ago and i love the experience because you know what i got to review the prices of everything i got to compare it with the reviews that people that did is that a good product a bad product and whatnot versus going

Down to a walmart store and having to go through a parking lot and have some guy asked me if he’s i got some money to give to him and then look at the products and they’ve had no review so i don’t know this expresso maker is good and this one isn’t and the selection is kind of limited now that sounds crazy talking about walmart having a limited selection but when

You compare it to amazon amazon’s got like every expresso maker ever walmart’s only gonna have probably three or four up there and then i got a stand in line for 25 minutes at walmart it’s just not worth it that’s why i ordered from amazon whereas few years ago i would have went to walmart and there are millions of americans doing the same thing i do number two

They’re getting a lot of competition from the dollar stores and the dollar stores is things like maybe somebody needs a bottle the glass cleaner so they go to wall they go to a dollar store for that instead of going to walmart maybe they need a little detergent for their dishwasher or something like that it might go to the dollar store and get a little bottle of


It instead of going all the way to walmart so that’s another way they’re getting competition and lastly and this one’s really a killer for them these kroger and kroger is the biggest food retailer and in all of america for those you don’t know they own kroger brand which some of you know in some states they own the smiths brand some of you know in some states and

They own fries which some of you will know in some states and the kroger has taken a lot of market share away from walmart the last couple years and that’s after walmart during the recession 2008 2009 2010 they took a lot of market share away from kroger and walmart grocery business was going gangbusters and that was really that one area that walmart’s business

Was growing and now kroger’s taken that away from them and that’s what we have now so the second piece is wages wages are going up for walmart walmart’s already announced they’re gonna raise employee wages and they could be looking at a lot more increase in wages if a democratic candidate gets in hillary clinton is talking about 12 dollar minimum wage a 12 dollar

Minimum wage is a lot more than most walmart employees make currently bernie sanders talking about $15 minimum wage $15 is way above what the average walmart employee makes so when you have sales that are fly or decreasing which is could be coming and then you have wagers that are going higher that is like the worst case scenario or if you’re a retailer that is

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Your way to a slow depth your expense is going up your revenue going down your profits getting killed and there’s not a lot of profit in retail you have to sell a lot of crafts to make any profit in retail anybody that’s worked in retail knows that so i’m just a participant it will be fun to see how it all plays out unless maybe you’re a walmart shareholder and it

Doesn’t play out too well over the next decade we shall see jc penney’s they made over a billion dollars in profit in 2007 seven years later 2014 they lost over a billion dollars that’s how quick it can happen in retail that is how quick things can change completely one day you’re on top of things you think you’re the greatest you’re making over a billion dollar

Profit a few years down the line you’re had a billion dollar loss and you could be looking at losing the entire company so things can change very fast and retail let’s see how it all plays out thank you for watching this subscribers if you haven’t subscribed please subscribe financial education channel we talk about business subjects financial related subjects

For you subscribers share this video with your friends and family i know you can’t be the only one in your inner circle who talks about this kind of stuff i want to really get you know good debates going on here and why not and have a great day

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Is Walmart next Kmart? By Financial Education

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