Interpreting Macroeconomic Conditions And Its Impact On Wal-Mart And
Both corporations, Wal-Mart and Starbucks, despite being in different industries, share the
same, one goal- market domination. They each overtake their industry, operate with low
costs, hire low paid stuff, and cause many small, local companies to go out of business.
Nevertheless they are not being treated the same by the society; many people hate Wal-
Mart, but does not mind Starbucks. Is the double standard caused by the great public
relations sector, or is it just people ignorance for facts.
Wal-Mart Stores, Inc is world’s largest retailer, serving their customers and members at more
than 8,446 locations, under 55 different banners in 15 countries. Wal-Mart’s goal is to save
people money, so they can live better, that mission was true many years ago when they
opened the first store, but it was even more important during the recent economic downturn,
which seems to be coming to the end (Wal-Mart, 2010).
During the recent recession Wal-Mart was one of the few businesses that have not
straggled; their sales revenues were really good, mainly due to their low prices, and higher-
income shoppers, which have not shopped their before the times got tough, but started
during the recent troubled economy. Since the wealth started getting better and the
consumer spending improved, they seems to be going opposite way, Wal-Mart’s sales have
been decreasing this year, sales growth in last quarter against last year were at: -12.15%.
Last year during the fourth quarter, the Christmas season Wal-Mart sales started decreasing
for the first time since the store went public in 1969. Wal-Mart’s president and chief
executive, Mike Duke stated recently that this year’s first quarter U.S. sales will be
challenging, but the international business should continue grow strong. The company
predicts the Wal-Mart and Sam’s Club sales to be flat, compared to increase of 3.6% and
4.2%, in the last year first quarter. Their profits are significantly lower comparing to previous
years, but the company strongly believes that they will get through the rough times and the
future sales and profits will go back to prior, high levels. However their stock is still strong