Wal-Mart Points to Taxes in Cutting Profit Forecast

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Aug. 15 (Bloomberg) -- Wendy Liebmann, CEO at WSL Strategic Retail, reviews second-quarter results from Wal-Mart , as the retailer cut its full-year profit forecast, pointing to the hike in payroll taxes. She speaks on Bloomberg Television's "Bloomberg Surveillance."

Is this a new strategy for walmart for taking a page at of their own playbook, undercut everyone on prices?

I think it is going back to where it began, being very aggressive to get shoppers back into the stores today.

What i look at same-store sales, unchanged versus the consensus, it is walmart so big that it is hard to move the middle?

-- move the needle?

You are absolutely right, it is a very big company.

You have a core shopper that continues to struggle.

One of the challenges they have.

Does walmart still get to dominate as price leader?

Does it get to set the rules with online retailers like amazon and everyone else?

That is the big challenge.

Amazon and cure plate retailers have made inroads.

Choppers think they can get the best prices online.

Online has become really important for them.

Does walmart have a big on- line business of its own?

They do, but they have not been able to crack that presence.

A lot of other shoppers go to amazon.

Until they get them back in the store, the that is a problem for them.

To come if they are going to make price cuts come into the ether margin or slam it down the suppliers throats?

I think about those little rooms in bentonville.

We always look at it from the shopper point of view.

I cannot answer that.

I do not know the answer.

I am not being coy.

I did what they are saying is it is about market share.

How do they get more people in this perplex i agree with you.

This time is different.

It is about week nominal gdp.

These elephants are adapting.

Walmart is such a giant.

So many segments they compete in.

Groceries have been competitive lately with kroger playing the same game, matching them on the low prices.

That is that every day trip.

If they can get the grocery prices down, then they will buy other stuff.

They really have to be tough on the grocery pricing.

The strategic shift back to their old way.

Does this follow a series of missteps from the management of walmart?

I am not sure it is missteps.

Trying to redefine retailing every year.

Every day you have a change in the customer's attitude, where they shop and do not want to shop.

We were just talking about $4,000 handbags.

That ain't walmart.

I am sorry, the paychecks are not there.

They're the ones being most hurt by the economy.

They are really scraping together every day to pay crochets, diapers, to get the gas to get to the store.

That is what helps walmart.

The customer will not go to the target for sears or penney's or some of the department stores.

They will go down because the low was price denominator is walmart, and as long as walmart gives them about you, they will go there.

The worry is how to get them

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change