When I was a Air Force 1/Lt and newly married we lived pay check to pay check. As a result we did most of our food and cloths buying at the beginning of each month, cutting back on those little extras like eating out, buying a new book, or taking an afternoon drive in the country near the end of the month. Over time Ellen build up our financial reserves and we were less prone to this first of the month buying.
Since Wal-Mart is one of the places that families living paycheck to paycheck shop, they is sensitive to that economic behavior. Wal-Mart averages 140 million shoppers weekly to its US stores and is considered a barometer to the health of our economy. This recently appeared in CNN Money:
Wal-Mart’s core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday.
“We’re seeing core consumers under a lot of pressure,” Duke said at an event in New York. “There’s no doubt that rising fuel prices are having an impact.”
Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.
Lately, they’re “running out of money” at a faster clip, he said.
“Purchases are really dropping off by the end of the month even more than last year,” Duke said. “This end-of-month [purchases] cycle is growing to be a concern.
If Wal-Mart is not seeing an economic recovery, we are not recovering, regardless of claims from Washington.
Wal-Mart has decided to bring back guns and ammunition to it's US stores. They stopped selling guns when they started "going green", hoping to attract higher end customers for their organic foods and natural products. However, with declining sales under the going green strategy Wal-Mart has decided to return to the basics that made them a economic giant, to include bringing back guns and ammo to a Wal-Mart near you.
Exit Question: How are increasing fuel prices and increased demand for guns and ammo connected?