Wal-Mart Is Its Own Worst Enemy: Flickinger

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Aug. 14 (Bloomberg) -- Burt Flickinger, managing director at Strategic Resource Group, explains what led Wal-Mart to cut its profit forecast. He speaks with Matt Miller on "Bottom Line." (Source: Bloomberg)

That must be a typo.

For more on the retail sector, i'm joined by the managing director of the resource group.

Is that right, six quarters in a row?

That is right, five negative, one flat.

What is the problem there at walmart?

I thought that was the place.

I thought walmart and low-cost discount stores were where everyone is going.

But walmart lost low-price leadership.

The shelves are not stocked.

They have one page in their playbook, cutting costs, cutting labor.

If shoppers cannot find what is on his or her list, they go to dollar stores, go online.

Walmart is its own worst enemy.

I went to sears last night because i thought i should frequently's brick and mortar stores, or they will disappear.

I was looking for a set of torque wrenches.

The shelf was empty and no one was around to tell me if there were any in the back.

It seems that way across the board.

Y echo -- why?

When you have highly accountable management in the case of sears, or people with the highest wealth in the u.s. with the walton family, they don't go to the stores.

Sam walton flew in on his prop lame unannounced to every single store.

Back in the day, you are saying.

Yes.

His heirs do not.

And now, everybody knows they are coming.

They are set up.

They do not see that doors the way you and i do.

Third shift, during the week, or any time during the weekend.

What are the success stories?

If these are the failures of retail right now -- and i realize that managers in place to try to turn them around, which we can talk about next quarter or the quarter after.

What is doing well in retail right now?

The four cornerstones is luxury, home improvement, and third is chain drug, and fourth is kroger and the leading supermarket players like window.

I got to ask about cosco, because a number of people have mentioned as the winner right now.

And industry leaders have said it is the bane of their consist -- their existence because they are such good competitors.

What is costco doing right that everyone else wants to copy?

They are doing it right.

They are paying their workers much more than walmart workers make.

But the real winner is kroger.

Kroger wins in every format, grocery, discount, pharmacy, and gas.

And the best everything, including the price.

Thank you for joining us.

Always a pleasure to have you.

"streetsmarts" is next.

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This text has been automatically generated. It may not be 100% accurate.

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