Thursday, October 27, 2011

MickyD and Walmart

As the pauperization of America proceeds apace, it would seem the ultimate winners (besides the 1%) are McDonalds and Walmart.  The middle class will wind up trading down to Walmart for their clothing and food, and to McDs for that all important night out.  A client who buys veg from me made the observation that McDonald stock is up.  However, Walmart is not.  One theory is while the lower echelons of the middle class have been Walmartized, the company is losing its core customers.  The vast underclass who live paycheck to paycheck are running out of money before the month is over.  Unemployment checks don't go as far, and if one spouse loses their job the money barely covers rent and food.  I guess the Dollar stores are the last resort for some of these people, and it does not bode well for the country if even mighty Walmart can't fight this tide.  One silver lining for the veg industry is when the poor can't afford the Friday night fast food fix, they can buy enough veg to feed their family for a few days with what they save on that QP with cheese.  We can only hope...

No comments:

Post a Comment