Call it the "Wal-Mart Syndrome".
Entire industries -- such as low-end retailers like Wal-Mart Stores Inc. (NYSE: WMT) and fast food chains like McDonald's Inc. (NYSE: MCD) - pump up their profits by paying employees extremely low wages.
But thousands of Americans who need to support a household on such low wages - either the federally mandated minimum wage of $7.25 or just a bit above it - can only do so with public assistance.
In other words, with the help of welfare.Read More...
retail stocks 2012
What Wal-Mart's Dismal Sales Mean for These Retail Stocks
While we showed you last week how high-end retail stocks were soaring right now, on the flipside of things is Wal-Mart Stores Inc. (NYSE: WMT).
A Wal-Mart executive offered a candid view of just how bad sales have been of late in an e-mail to other company execs obtained by Bloomberg News.
"In case you haven't seen a sales report these days, February [month-to-date] sales are a total disaster," Jerry Murray, VP of finance and logistics, said in the Feb. 12 e-mail. "[It's] the worst start to a month I have seen in my seven years with the company."
The retail giant's woes stem from a confluence of factors hurting sales: the 2% increase in the payroll tax, the recent surge in gas and food prices and consumer confidence levels sinking to their lowest since 2011.Read More...