Walmart Is About To Make A Big Change...

hey everybody ninja here I hope you're doing great got some things to talk about Walmart because there are some interesting information coming out uh from Wall Street right revenue is being raised or the outlook for Revenue being raised by Walmart just out there on the street and everyone's exciting right one of the largest retailers on Earth literally saying hey things are looking good but I am actually here to challenge that thought and say that actually things are bad and we're going to tell you this story but first I want to explain thousands of these buildings literally thousands and thousands have been built across the country but not all of them are alike and so I'm going to go through this story and then explain exactly what I'm saying here okay we have to read between the lines this is out of CNBC Walmart raises full year guidance as earnings beat on Boost from grocery and online businesses it says Walmart has raised its full year forecast Thursday as fiscal first quarter sales Rose nearly eight percent and it's large grocery business helped offset weaker sales of clothing and electronics the company shares rows in pre-market trading as the Discounter beat Wall Street's earnings and revenue expectations Walmart lifted its guidance to reflect the earnings beat it said it now now anticipates Consolidated net sales will rise 3.5 percent in the fiscal year it expects adjusted earnings per share for the full year to be between six dollars and 10 cents and six dollars and 20 cents roughly in line with analyst expectations Chief Financial Officer David uh John David Rainey said consumers are trading down to smaller pack sizes buying fewer discretionary items and waiting for promotions before making pricey purchases like TVs yet Shoppers are still spending he added we are seeing in these economic indicators there is some strain on the consumer there is some strain put down the comments section if you think that you're experiencing some strain or are you experiencing a lot of strain but this is the CFO of Walmart saying this right but resilience the resilience of the consumer has surprised us and he says here and I think that it's in part probably because balance sheets are much stronger than we were pre-pandemic then even at this point so here's the deal the consumer is not resilient right now and they are not stronger and Walmart is very very confused and I believe they're in a lot of trouble and I'm explaining why right now first off like he said they are spending less money on discretionary items what Walmart doesn't understand is that Walmart is getting a boost in an influx in new customers why because customers that used to shop at Target and other stores like it around the country are now finding that because Walmart is so much larger and can buy in such greater quantity that they are able to offer prices a little bit lower than these other stores so the customers are literally leaving these stores and now coming to Walmart all right so they are seeing an influx in customers the amount of customers is literally more traffic there's actually more foot traffic in a Walmart today than there was a year or two ago and the reason why even in 2018 or 2019 because of that simple fact all right Walmart can beat prices on top of that they are TR right the consumer is spending less money on discretionary items so let's talk about these buildings that have been built around the country think about it this local Walmart does not have a grocery Center matter of fact it has two uh refrigerated aisles and about two or three uh four aisles of food now ironically that has grown over the last few years why because Walmart even these that do not have an actual grocery store in them a full-fledged grocery store like Walmart super centers are figuring out that their floor space is more valuable if there's food on those shelves than there is if there's crap like piggy banks and things like that toys and Sporting Goods people don't have the money for that anymore why because of inflation all right so Walmart might be beating expectations which I believe right now are actually the bar has been lowered on Wall Street because Wall Street analysts understand that they can't be wrong 100 of the time and that the game has changed so they're lowering the bar and all of a sudden these companies are like Hey we're meeting or beating expectations but it's all a farce it is not really happening it's all Kabuki theater so now think about all of these buildings that at one time sold massive amounts of TVs the size like in this one the Size Electronics Center is about the same size right now as the grocery Center pretty soon that's about to change Walmart's around the country I believe are going to be less electronics and pretty much all groceries matter of fact you'll pretty much start seeing it like a general store why because people don't have the money for a bunch of cheap crap from China they're getting tapped because the Federal Reserve has raised uh rates they have that with crippling inflation so it's causing everything to go up and for the time being since nothing has been truly broken in the eyes of the consumer even though the consumer is broken and doesn't know it yet I know that sounds crazy but is a psychological event that has to happen and usually it happens with the masses the Sheep when it's all over the news but it's not in the news just yet yes sure inflation's in the news but when you have stories like this well the economy must not be doing that bad because one smart sales are up but they're not they're only up in certain aspects and that is the Necessities to survive look the fact of the matter is things are bad and they're getting worse what are you going to do about them I hope you got something out of this thank you to everybody that shared and hit the thumbs up on this video the economic Ninja is out

Channel: The Economic Ninja

Views: 386,830

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Id: E68_n_t73i8

Length: 6min 12sec (372 seconds)

Published: Sun May 21 2023