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View Diary: Understaffing is hurting Walmart, says equities research firm (176 comments)

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  •  hmmm - (1+ / 0-)
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    VClib

    whether or not the market demand will sustain these hypothetical price increases; that is the real world question. Sales decrease, after-tax profits decrease, then stock prices decrease?

    Interesting speculation. Put more spendable wages in these lower-tier employees' hands, then how would this increased spending power affect sales of lower-tier retailers like Wal-Mart?

    “Vote for the party closest to you, but work for the movement you love.” ~ Thom Hartmann 6/12/13

    by ozsea1 on Mon Feb 10, 2014 at 04:45:35 PM PST

    [ Parent ]

    •  There is no doubt that higher wages for low (2+ / 0-)
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      virginislandsguy, ozsea1

      income workers would help Walmart revenues. However, that doesn't mean that higher wages for Walmart workers would help Walmart. When this issue was rolling around a month or so ago, I did some very high level estimates and for every $1 increase in wages to a Walmart worker the company would need about $5 of increased sales to break even.

      I personally favor an increase in the minimum wage, regardless of how it impacts Walmart (who I think are terrible employers). I think the proposal to move the minimum wage to $10.10, over the next two or three years, would be a real positive and have little effect on employment. That increase is very much in line with recent increases in terms of the percentage change and actual dollars of spending power.

      "let's talk about that"

      by VClib on Mon Feb 10, 2014 at 06:41:56 PM PST

      [ Parent ]

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