Retail giant Walmart is going to close 154 stores in the U.S. and an additional 115 in other countries. Walmart currently has about 4,500 stores in the U.S. They’re primarily closing Walmart Express stores, a convenience store type test that isn’t working for them.
Here’s a report from Bloomberg that highlights the real problem with these closings.
It’s not “Walmart” that has problems, it’s the retail sector of the economy. In the 80’s and 90’s traditional retailers like Macys were struggling to compete with “big box” stores like Walmart. Today they have to compete with “no box” retailers like Amazon whose overhead is a fraction of a retail store.
Walmart will be opening new stores this year, they are the big dog on the street when it comes to retail.
The one development that no one is talking about right now is what Walmart announced with respect to a roll-out in Washington D.C. They opened three stores in the nation’s capitol and were scheduled to open two more to serve the low-income minority residents of the city. But the City Council and D.C.s white, wealthy, progressives and their black, inbred politicians made sure that wouldn’t happen.
Walmart has decided not to build some of the stores that it had said it would in Washington DC. Obviously, the people who brokered the deal aren’t happy about this. Yet those same people are the very people that passed the laws that Walmart, informally at least, is saying have led to the change of mind. It is, obviously, always nice to see the biter bit, someone hoist on their own petard. But the people who will lose out from this are the consumers of those poorer areas of the capital. And the reason they’ll lose out is because the politicians have been loading costs onto Walmart by insisting upon higher wages in several different ways.
The City Council has raised the minimum wage in D.C. and there’s a ballot initiative that will will raise it again, this time to $15 per hour. In addition, Washington’s progressives are looking at measures that will force corporations to pay into a pool for increased time off for workers for “family time.”
Bottom line, Barack Obama’s political progeny are “helping people” right into the poor house. Or actually, into the arms of the federal government.
“If a hard-working American loses her job, regardless of what state she lives in, we should make sure she can get unemployment insurance and some help to retrain for her next job,” Mr. Obama said. “If she finds a job that doesn’t pay as much as her old one, we should offer some wage insurance that helps pay her bills.”
In other words, he wants to federalize unemployment benefits.
I seriously doubt this will survive the Republican Congress, even with establishment toads like McConnell and Ryan at the helm. Obama’s doing it for talking points for November. “Evil Republicans want to starve the poor.”
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