WAL-MART AND THE ‘POORING OF AMERICA’
I’m not sure where the phrase “Pooring of America” came from, but it’s perfect to explain Wal-Mart’s effect on working families. Seeking Alpha ponders why Wal-Mart and McDonald’s are doing so well right now.

What are McDonald’s and Wal-Mart Telling Us? [Seeking Alpha]

I am very intriqued by our top 2 choices for the “Pooring of America” trend - Walmart (WMT) and McDonalds (MCD) - what exactly are the charts above telling us?  If we are to enter a long drawn-out recession, which I have believed, these seem to be screaming buys here. The only question is credit - how does a lack of credit potentially hurt both. They are not expanding a ton, in the U.S. at least - perhaps with Wal-mart it’s financing of inventory, but I cannot wrap my mind around this behavior.

Wal-Mart gets downgraded while stock up in 2008 amid the turmoil [BloggingStocks]

Will Wal-Mart weather the storm? To a point, it already is. Sure, all retailers are expected to have a dismal holiday season this winter, but Wal-Mart will do better than the competition. It has more stores, more pricing leverage and more wherewithal to hold customers hostage with lower prices and inventory turns at a time when it’s needed most. Perhaps we’ll see WMT return to the $60/share level by Thanksgiving—if not sooner.

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SANTA TO WORK LONGER HOURS WITHOUT OVERTIME THIS YEAR
Wal-Mart announced this week that it will start cutting toy prices almost three months before Christmas. To which Santa Claus replied, “Seriously?”

Wal-Mart starts the discounting early this year [BloggingStocks]

According to The Wall Street Journal, “Wal-Mart Stores, Inc. said it will cut prices on some of the most popular toys and speed up the opening of Christmas shops in its stores nationwide as it tries to lure budget-conscious shoppers and jump start its biggest selling season.”

Wal-Mart: Coal In The Retail Industry’s Stocking [24/7 Wall St.]

Wal-Mart’s action is a typical method for burying the competition. It can afford almost endless inventory build-ups for the busy shopping season. It can pull in the very modest amount that the consumer has to spend and leave other retailers with scraps off the table.

In which Walmart explains why we’re all doomed. [Writing on the Wal]

Obviously, I’m a masochist. I actually read Walmart’s press release on its early rollback of toy prices. While the Play-Doh Ice Cream Shop would be tempting if it weren’t Walmart we’re talking about here, I was much more struck by the survey results at the bottom of the document. Most notably:

Sixty-one percent of Americans do not plan on making cut-backs on how much they spend this Christmas season.

*Those who do plan on making cut-backs, plan on cutting back $50 or less.

Don’t you think that result seems just a tad self-interested? Why is that stat there if not to convince people to spend more whether they can afford to or not? I suspect Walmart has declared Christmas early because they’re afraid nobody will have any money left in December.

After the jump, Wal-Mart shuts down DRM music downloads, managers make up their own rules and 210,000 toasters get recalled.

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Christmas decorations usually start showing up in stores starting in early November. By the time Thanksgiving rolls around, shallow panic sets in and consumers start acting like starving hyenas hungry for merchandise. Retailers only make the savage atmosphere worse by discounting for a-limited-time-only and pitting shopper against shopper for the hottest toy or lowest price. Now, a full three months before Christmas, Wal-Mart says: Let the games begin.

Wal-Mart Cuts Prices on Toys for Holidays [Dow Jones Newswire via Wall Street Journal]

Wal-Mart Stores Inc. said it will cut prices on some of the most popular toys and speed up the opening of Christmas shops in its stores nationwide as it tries to lure budget-conscious shoppers and jump start its biggest selling season.

Ten toys, from butterfly-winged Barbie Mariposa to Fur Real Newborn Animals, are priced at $10 apiece, the Bentonville, Ark.-based company said Wednesday.

Wal-Mart said its moves to get an early start on the holiday selling season are warranted for several reasons. Shoppers are facing higher energy prices and food costs as well as a sluggish economy and the credit crunch. They are expected to start their Christmas shopping earlier and make other changes to help stretch their holiday budgets.

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