Walmart’s Shiny New $11 Minimum Wage Isn’t Really A Result Of The Tax Law

[Crepitus]

Walmart’s Shiny New $11 Minimum Wage Isn’t Really A Result Of The Tax Law (https://www.huffingtonpost.com/entry/walmart-minimum-wage_us_5a582a98e4b02cebbfda6799?section=us_politi cs)


In 2015, back when Barack Obama was still president and tax law was little more than a Paul Ryan fantasy, Walmart similarly announced that it had decided to raise its baseline wage to $9 per hour almost immediately, and to $10 per hour the year after that. At the time, McMillon, Walmart’s CEO, had no qualms about suggesting the broader economy was a main reason for the change. “It’s great to see the job market getting better, and the market works, so we’re adjusting to that market,” he told CNBC.In 2016, CNN cited the increasingly competitive labor market and a low unemployment rate ― which makes finding and retaining workers more difficult ― as the primary reasons Walmart was increasing wages and benefits.Those trends have not only continued through 2018, but intensified. Advocates and tax policy experts alike said on Thursday that it was shocking that the country’s largest employer hadn’t raised wages earlier.Investor’s Business Daily reported as much last October. Shortly before that, Target, one of Walmart’s largest competitors, made the decision to increase its minimum wage to $11 per hour and to $15 per hour by 2020, causing Wall Street analysts and Walmart investors to worry Walmart would try to keep up.

Read the rest at the link.

[Kalkin]

Who cares? Tax cuts don't mean wages are rising, they mean people will be taxed less.

[Crepitus]

Who cares? Tax cuts don't mean wages are rising, they mean people will be taxed less.

You know Walmart is closing a bunch of stores right?

[Kalkin]

You know Walmart is closing a bunch of stores right?
You gotta know when to hold 'em, know when to fold 'em.

[Crepitus]

You gotta know when to hold 'em, know when to fold 'em.

So, tax cuts cause store closings then?

[Kalkin]

So, tax cuts cause store closings then?

Nope, poor sales are usually the culprit. C'mon man, this isn't rocket science.

[Trish]

What I'm learning and have learned this past year is that there seems to be an answer to everything for some.

[countryboy]

Nope, poor sales are usually the culprit. C'mon man, this isn't rocket science.

They're actually closing Sam's Club stores, not Wal-Mart stores.

[Trish]

They're actually closing Sam's Club stores, not Wal-Mart stores.

Sam's club is a subsidiary of Walmart.

[countryboy]

Sam's club is a subsidiary of Walmart.

No kidding, hence the term "they". Still, different business model.

[Trish]

No kidding, hence the term "they". Still, different business model.

What's your point with relations to this story?

[Kacper]

What's your point with relations to this story?
Closing those particular stores may not have all been about profitability. Walmart spends a ton of time researching every model in the marketplace and has the cash to experiment. They have recently been experimenting with drive through stores where you order ahead and just drive up and pick up with no inside shopping at all. We have a Walmart, Sams, and and Walmart grocery/gas station store in our area. They bought some land to build a second Superstore in our area but then put the breaks on it because it ended up being slightly too close by a couple miles to the other store and they have some formula they use for that, so they are now considering putting a distribution center there. Walmart's website did a lot of free shipping to compete with Amazon last year. I never paid shipping on anything other than checks that I bought from them last fall. They have experimented with closing superstores and replacing them with smaller footprint stores because their research shows that they could get better returns in some places when people have to walk less in the store.

Anyway, my personal beef with Sam's Club is that the quantities are too large for my household to make it worth buying them so a lot gets wasted. I am considering ditching my membership there once my dog croaks as large quantities of chicken to feed my dog are the only really saving we get. She has gastro issues and chicken is the only thing I can feed her that she will consistently eat that doesn't cause issues.

[Trish]

Closing those particular stores may not have all been about profitability. Walmart spends a ton of time researching every model in the marketplace and has the cash to experiment. They have recently been experimenting with drive through stores where you order ahead and just drive up and pick up with no inside shopping at all. We have a Walmart, Sams, and and Walmart grocery/gas station store in our area. They bought some land to build a second Superstore in our area but then put the breaks on it because it ended up being slightly too close by a couple miles to the other store and they have some formula they use for that, so they are now considering putting a distribution center there. Walmart's website did a lot of free shipping to compete with Amazon last year. I never paid shipping on anything other than checks that I bought from them last fall. They have experimented with closing superstores and replacing them with smaller footprint stores because their research shows that they could get better returns in some places when people have to walk less in the store.

Anyway, my personal beef with Sam's Club is that the quantities are too large for my household to make it worth buying them so a lot gets wasted. I am considering ditching my membership there once my dog croaks as large quantities of chicken to feed my dog are the only really saving we get. She has gastro issues and chicken is the only thing I can feed her that she will consistently eat that doesn't cause issues.
Thank you Kacper. My impression of the article was that it was an example of hypocrisy. The message I got was that the company was embracing the huge tax break they are going to get by passing some of it on via bonuses while on the other hand they are issuing pink slips to me is disingenuous. It seems they are in fact offsetting the loss they incur through the bonus by closing stores or laying off employees. That may not be the case but it has the appearance. In addition, these layoffs and closings generally have a HUGE economical impact on the local community and local businesses. It is a rippling affect.

I share your personal beef. It was a great idea initially but they needed to change in order to stay relevant to today's families.

[nathanbforrest45]

Behind every Silver Lining we will find a grumpy old Stalinist looking for a cloud.

[Captdon]

Walmart’s Shiny New $11 Minimum Wage Isn’t Really A Result Of The Tax Law (https://www.huffingtonpost.com/entry/walmart-minimum-wage_us_5a582a98e4b02cebbfda6799?section=us_politi cs)



Read the rest at the link.

So what?

[nathanbforrest45]

So, tax cuts cause store closings then?

No, places like Amazon cause store closings.

[Captdon]

You know Walmart is closing a bunch of stores right?

Yea, he knows. What has that to do with your own post?

[nathanbforrest45]

Sam's club is a subsidiary of Walmart.


Its still not Wal Mart stores closing. Different customer base, different marketing strategy.

[Captdon]

So, tax cuts cause store closings then?

No and this getting stupid.

[Captdon]

Sam's club is a subsidiary of Walmart.

They still aren't Wal-Marts. Sam's Clubs can't compete with Costco.

[nathanbforrest45]

No and this getting stupid.

What did you expect. You are not starting the thread with postings from an intellectual genius you know.

[Captdon]

What's your point with relations to this story?

What's yours?

[Trish]

Its still not Wal Mart stores closing. Different customer base, different marketing strategy.

Average people don't look at in the terms you describe. A job loss is a job loss. To give one person more while taking from another....... That's an awful optic.

[nathanbforrest45]

The tax break may not have been the prime motivator but it certainly made giving the raises easier with the additional money Wal-Mart would have in its coffers.

[Trish]

What's yours?

I posed my question to him because I was trying to figure out what the argument was so we could have a discussion. If you look at my comments to Kacper and Nathan I think they express my point.

[nathanbforrest45]

Average people don't look at in the terms you describe. A job loss is a job loss. To give one person more while taking from another....... That's an awful optic.

I think most people don't equate Sam's with Wal-Mart. There are always shifts in work forces. How many companies have closed their brick and mortar stores and gone completely on line? Look at what is happening with grocery stores in South Korea and I can guarantee it will happen here in the near future. I am speaking of the on line stores where the shoppers simply press a button for what they want, the order is filled from a distribution center and either delivered to the customer or is available for pick up. Eventually, this will all be on your computer and only the distribution centers will be staffed.

https://www.google.com/search?q=south+korea+supermarket&rlz=1C1AOHY_enUS708US708&tbm=isch&source=iu&ictx=1&fir=jdJiJaPLqLPljM%253A%252CCg0-pJMfttgQbM%252C_&usg=__3BerItjnII1Xh1ia5t_quC4Af80%3D&sa=X&ved=0ahUKEwjbn6X-mtXYAhVE4YMKHXDoCewQ9QEIcTAF&biw=1024&bih=673#imgrc=_

[Trish]

I think most people don't equate Sam's with Wal-Mart. There are always shifts in work forces. How many companies have closed their brick and mortar stores and gone completely on line? Look at what is happening with grocery stores in South Korea and I can guarantee it will happen here in the near future. I am speaking of the on line stores where the shoppers simply press a button for what they want, the order is filled from a distribution center and either delivered to the customer or is available for pick up. Eventually, this will all be on your computer and only the distribution centers will be staffed.

https://www.google.com/search?q=south+korea+supermarket&rlz=1C1AOHY_enUS708US708&tbm=isch&source=iu&ictx=1&fir=jdJiJaPLqLPljM%3A%2CCg0-pJMfttgQbM%2C_&usg=__3BerItjnII1Xh1ia5t_quC4Af80%3D&sa=X&ved=0ahUKEwjbn6X-mtXYAhVE4YMKHXDoCewQ9QEIcTAF&biw=1024&bih=673#imgrc=_

Hmmmm......maybe you're right about the average person not knowing the connection but I'm sure they do now. :0)

I agree 100% about the changing landscape of how consumers purchase. It's worrisome in the sense that we don't really seem to have a plan on what we do with those individuals who will be losing their jobs.

[Chris]

Walmart’s Shiny New $11 Minimum Wage Isn’t Really A Result Of The Tax Law (https://www.huffingtonpost.com/entry/walmart-minimum-wage_us_5a582a98e4b02cebbfda6799?section=us_politi cs)



Read the rest at the link.


Indeed, “It’s great to see the job market getting better, and the market works, so we’re adjusting to that market.”

That could be a change in the job market or it could be a tax cut that lets businesses use their profits as they see fit. There's no contradiction and the OP is not a counterargument.

[The Xl]

So, tax cuts cause store closings then?

How would that even make sense?

[Chris]

You know Walmart is closing a bunch of stores right?

And opening more. They are closing Sam's, they said, and building a new one a mile from my house. They do this all the time. Move into a local market, thinking it will be profitable, and when it's not, close down the store, while opening others elsewhere.

[Chris]

What I'm learning and have learned this past year is that there seems to be an answer to everything for some.

Some answers are right and some are wrong.

[Kacper]

Thank you Kacper. My impression of the article was that it was an example of hypocrisy. The message I got was that the company was embracing the huge tax break they are going to get by passing some of it on via bonuses while on the other hand they are issuing pink slips to me is disingenuous. It seems they are in fact offsetting the loss they incur through the bonus by closing stores or laying off employees. That may not be the case but it has the appearance. In addition, these layoffs and closings generally have a HUGE economical impact on the local community and local businesses. It is a rippling affect.

I share your personal beef. It was a great idea initially but they needed to change in order to stay relevant to today's families.
O I don't know for sure why they closed some of these stores. One in my state is being closed in a fairly large population area so it may be a location issue, a profitability issue, or they are going to try something different in that market. A one within 90 miles of me in another state that is closing doesn't make a lot of sense to me either, but it is in a cluster of compacted towns/cities so they may have decided that people who go there will likely drive to the other one. While not all of their business, ours seems to do well as a wholesaler for cigarettes and other things for retailers who perhaps do not get the same discount from their supplier that they could get buying at Sam's. I know the convenience store closest to me buys a lot of stuff from Walmart because the owner says that he can get it cheaper from them than from the area distributor on things like soap, toiletries, etc. He just has to go get it as opposed to having it delivered to the door.

[Trish]

Some answers are right and some are wrong.

True ....... and then there's common sense and dignity.

[Chris]

True ....... and then there's common sense and dignity.

Right, common sense and dignity is what needs to be argued in support of an answer.

[Trish]

Right, common sense and dignity is what needs to be argued in support of an answer.

You must be grumpy today. :0( I'm staying clear.

[Chris]

You must be grumpy today. :0( I'm staying clear.

??? I'm agreeing. People give opinions, only some argue to defend them. Common sense and dignity are two attributes to argue for an opinion.


The nose should be red: :0(

[Trish]

??? I'm agreeing. People give opinions, only some argue to defend them. Common sense and dignity are two attributes to argue for an opinion.


The nose should be red: :0(

Sorry - I'm on the phone dealing with my son and reading comments so my mind isn't focused. Maybe I'm grumpy today. lol

[Hoosier8]

The left - good news is bad news.

[Tahuyaman]

What I'm learning and have learned this past year is that there seems to be an answer to everything for some.
Shouldn’t there always be an answer for everything?

[countryboy]

What's your point with relations to this story?

Accuracy, obviously.

[countryboy]

Hmmmm......maybe you're right about the average person not knowing the connection but I'm sure they do now. :0)

I agree 100% about the changing landscape of how consumers purchase. It's worrisome in the sense that we don't really seem to have a plan on what we do with those individuals who will be losing their jobs.

What do you mean "we"? Why would "we" have a plan for displaced workers from the private sector, above and beyond unemployment benefits and COBRA?

[Dr. Who]

I think most people don't equate Sam's with Wal-Mart. There are always shifts in work forces. How many companies have closed their brick and mortar stores and gone completely on line? Look at what is happening with grocery stores in South Korea and I can guarantee it will happen here in the near future. I am speaking of the on line stores where the shoppers simply press a button for what they want, the order is filled from a distribution center and either delivered to the customer or is available for pick up. Eventually, this will all be on your computer and only the distribution centers will be staffed.

https://www.google.com/search?q=south+korea+supermarket&rlz=1C1AOHY_enUS708US708&tbm=isch&source=iu&ictx=1&fir=jdJiJaPLqLPljM%3A%2CCg0-pJMfttgQbM%2C_&usg=__3BerItjnII1Xh1ia5t_quC4Af80%3D&sa=X&ved=0ahUKEwjbn6X-mtXYAhVE4YMKHXDoCewQ9QEIcTAF&biw=1024&bih=673#imgrc=_
I agree. Retail is just moving online. I've even started shopping that way although when it comes to groceries, I like to choose fresh goods myself. I'm ok with buying most manufactured goods sight unseen, but some things I want to see in person. I feel sorry for those who are working in retail these days. I suppose jobs will open up driving for the postal service, UPS, Fedex and the like.

[Peter1469]

I agree. Retail is just moving online. I've even started shopping that way although when it comes to groceries, I like to choose fresh goods myself. I'm ok with buying most manufactured goods sight unseen, but some things I want to see in person. I feel sorry for those who are working in retail these days. I suppose jobs will open up driving for the postal service, UPS, Fedex and the like.

People have to deliver the stuff we buy online.

[Dr. Who]

People have to deliver the stuff we buy online.
At least for now.

[nathanbforrest45]

I agree. Retail is just moving online. I've even started shopping that way although when it comes to groceries, I like to choose fresh goods myself. I'm ok with buying most manufactured goods sight unseen, but some things I want to see in person. I feel sorry for those who are working in retail these days. I suppose jobs will open up driving for the postal service, UPS, Fedex and the like.There will also be higher paid jobs working in the distribution centers loading the trucks. The number of logistics personnel, those who arrange the transportation both in and out, will also likely increase.

[Dr. Who]

There will also be higher paid jobs working in the distribution centers loading the trucks. The number of logistics personnel, those who arrange the transportation both in and out, will also likely increase.
Perhaps. However they are automating warehouses more and more. There are not many transferable skills between cashiers and/or shelf stackers and logistics personnel. You definitely don't need as many involved in logistics. There will be a higher demand for drivers for now.

[Common]

I agree. Retail is just moving online. I've even started shopping that way although when it comes to groceries, I like to choose fresh goods myself. I'm ok with buying most manufactured goods sight unseen, but some things I want to see in person. I feel sorry for those who are working in retail these days. I suppose jobs will open up driving for the postal service, UPS, Fedex and the like.
We buy alot online but I still go to retail stores for things, Ive never had food delivered, I want to walk around the store and look and choose, and expecially meat and produce

[Peter1469]

People can also look out for emerging job fields that open up.

[Dr. Who]

We buy alot online but I still go to retail stores for things, Ive never had food delivered, I want to walk around the store and look and choose, and expecially meat and produce

Of course. Some people have standards when it comes to their greens and meats. I don't trust some underpaid student or part-time worker to really do more than go through a list and fill the grocery cart in as little time as possible.

[Common]

Of course. Some people have standards when it comes to their greens and meats. I don't trust some underpaid student or part-time worker to really do more than go through a list and fill the grocery cart in as little time as possible.
Ditto :)

[Chris]

Somebody has to manufacture all the stuff people are buying online as well. Some of it's old stuff but a lot is new technology.