[lbo-talk] Gas prices 2nd highest level ever

[jthorn65 at sbcglobal.net]

> --- jthorn65 at sbcglobal.net wrote:
> 
> > When gas prices rise people do less distance driving
> > and sometimes combine trips a bit more 
> > efficiently than they might otherwise but would they
> > be less likely to buy a widget or groceries 
> > at Wal-Mart than elsewhere? Unless it is because
> > Wal-Mart's have tended to cluster at the 
> > peripheries of cities and are less convenient than
> > other places?
> 
> There's Walmart's clientel being poor, and I bet gas
> has priority because without gas, a lot of people are
> going to have a hard time keeping a job.  Widgets get
> cut first.  Then I understand the food pantries are
> having a hard time meeting demand....
> 
> Andy

 
This suggests Wal-Marts customers are poorer than Kmarts. I have a difficult time imagining 
that. I know Wal-Mart claims the average household income of their customer is $42,000 
compared to Target claiming theirs is $49,000 but Targets sales are up 16%. Family Dollar 
Stores, which I imagine have lower per customer average household incomes than Wal-Marts, 
have sales up 10%. Wal-Mart claims they are behind the average but their sales are up 11%. 
Nationwide retail sales grew 6.7% in 2004 according to the National Retail Federation. 

Is there something here I don't get? How Wal-Mart "knows" their sales are off because of gas 
prices is beyond me. I think they're just saying whatever sounds good and blaming gas prices 
is as good an excuse as any. I know gas prices effect retail sales but without more proof I 
won't believe Wal-Mart is hit disproportionately compared to Kmart, Target, Family Dollar, 
Sears and others. Maybe I'm being overly obstinate but I don't buy it yet just because Wal-
Mart claims it's true. 

John Thornton