Walmart is far and away the most popular, the biggest, and the most visited store in the entire world.
Some people say they’re about world domination, but ultimately Sam Walton’s dream to serve people with great prices, great value, and a great selection is going strong.
This is how they’ve become the largest retailer in the entire world with earnings which dwarf the GDP of more than 150 countries.
No matter your opinion on Walmart these facts are indisputable.
Now when it comes to the importance of Walmart in America let’s just say without the store million of people would find themselves in a world of hurt.
It’s estimated every single week more than 100 million people will visit a Walmart store. More than 1/4 of all grocery sales in America are from Walmart, and if you were to put every single Walmart next to one another they would occupy 32 square miles, or the equivalent of 15,300 football fields.
“Ok Damian, I’ve heard stats like these before, where’s the disturbing news you were talking about?” I hear you saying.
That’s a good question and I’ll get to that in a second.
The biggest reason I mention those facts and figures is because I want you to see how the world, and America, are dependent on the empire of Walmart.
If Walmart trips and falls it’s not like if another company were to stutter…it means something HUGE is happening in the substrate of the world economy.
And what I’m about to tell you should give you cause for concern. These Shocking Facts about Walmart are quite sobering.
Alright, take a look at what’s going on at Walmart and then draw your own conclusions from there.
The Shocking Facts about Walmart You Absolutely Must Know
After you read that little bit above you get it, Walmart’s big…it’s giant…it’s “too big to fail.”
This is why what they’ve been experiencing these past few years is alarming.
No, Walmart isn’t at risk of closing; but they’re hurting really bad, and their pain is not your gain.
Walmart’s closing stores
In 2016 Walmart has announced plans to shutter 269 stores globally. 154 of those store closings are taking place here in the U.S. Part of the reason they’re doing this is because they’re moving to conduct more sales online.
This isn’t necessarily a bad thing, but take a look at the reason behind this move.
The truth is the cost of labor at Walmart has caused them some economic hardship. So they’re going for the easy way out and they’re chopping jobs.
Think about this for a second. Outside of the U.S. Government Walmart is the largest employer in the U.S. If they’re feeling economic pain and are forced to give employees the axe then what does that mean for the economy?
If the world’s most successful retailer is cutting jobs what does that say about smaller companies? Do you think they’re thriving? Are they going to be able to absorb the workers Walmart fired?
Walmart’s stock is suffering
If you pay attention to the stock market then you might already know this.
Simply put Walmart’s stock is struggling.
“Walmart’s stock has a Beta of 0.38 – which in layman’s terms means that it’s only 38% as volatile as the market as a whole. If a company that’s relatively stable is suffering to this extent, it’s a bad sign for the more volatile.”
Last year Walmart’s shares fell 30% in value, one of the biggest declines the company has ever seen.
Considering how Walmart’s position is inextricably linked to the Chinese economy (85% of all products sold in Walmart come from China) this signals a huge disruption on the global front. If Walmart were to falter harder then China might also suffer.
This is bad news because China owns trillions of dollars in U.S. debt and could easily call in that debt at anytime.
Keep in mind there’s a lot more to the Chinese economy than just exports to Walmart, but again we’re talking about tremors. If the world’s most successful company is watching their stock decline it’s likely indicative of what’s happening with other companies too.
And the reality is this could be a hint of something much larger and much scarier to come.
Walmart is killing jobs
Not only does Walmart closing stores have a direct impact on the workers who work for the retailing behemoth; it also has cataclysmic affects on communities where their stores are located.
You’ve likely heard this for years, so that’s not a huge surprise.
But consider this, “The number of ‘independent retailers’ in the United States declined by 60,000 between 1992 and 2007…and According to the Economic Policy Institute, trade between Wal-Mart and China resulted in the loss of 133,000 manufacturing jobs in the United States between 2001 and 2006.”
The loss of jobs isn’t the worst news in the world, but in many communities people who lose those jobs can’t just go and find a new one.
Resources and opportunities are limited, and this creates a huge economic burden.
Worse yet is how the owners treat their employees. In a single hour the CEO of Walmart will make what the average employee at Walmart will make in a year. This has forced thousands and thousands of their employees onto medicaid and medicare along with other forms of governmental assistance.
Some might argue this is capitalism and that’s how things work in a free market system.
Not so fast.
As the Center for Responsive Politics noted Wal-Mart really likes to spend money on influencing politics. In 2011 they spent $7.8 million dollars on lobbying, that doesn’t even count how much they spent on campaign contributions.
Essentially what they’re doing is using the government to instill a kind of governmental system known ascorporatism, which is “the control of a state or organization by large interest groups.”
Walmart might be able to provide Americans with low cost goods but it’s not for the average American they do this. They do it for themselves. Again, consider this; the combined net worth of 6 members of the Walton family is roughly equal to the combined net worth of the poorest 30 percent of all Americans.
If this happened in a free market system then that’s fine; hard work, thrift, and wise living can bring about those kinds of results.
But Walmart’s not working that way (Sam Walton did), they’re buying into the government and that’s scary.
So those jobs that are being lost because of Walmart only matter to them when it affects their bottom line, not yours.
As the writers at Happy Prepper wrote:
Our economy is becoming completely and totally dominated by highly centralized monolithic predator corporations that ruthlessly crush all competition and that will stoop to just about anything in order to cut costs. In the future, will we all be working for gigantic communal entities that funnel all of the wealth and economic rewards to a very tiny elite? That sounds very much like how communist China works, and red-blooded Americans should want no part of that. America is supposed to be about free enterprise and competition and working together to build up this country, and Wal-Mart is destroying all of that.
Now That You’ve Learned This, Here’s What You Do
Remember this, what’s going on at Walmart could indeed signal what’s to come.
This is why it’s so incredibly important to be prepared for the moment when everything changes.
It will change in a heartbeat, in a flash…
So ask yourself, do you have what you need in case things go south?