Essay: Wal-Mart Inc. During Recession
The macro-economic indicator that can be seen to highly being influential to Wal-Mart Stores, Inc. is unemployment rate. Even though the firm has been putting efforts to increase the employment rate in the U.S, unemployment has been an issue and this lowers its costs. It has been noted that opening of a new Wal-Mart Stores, Inc. store ensures 100 new jobs but these jobs are short-lived since they are lost only after five years. After citizens loose jobs from their high paying jobs, they are absorbed in Wal-Mart Stores, Inc. from where they will have to earn low than before. It has been proved that the countries with Wal-Mart Stores, Inc. stores have increased poverty rates when compared to the counties which do not have these stores (Goetz, & Hema, (2004).
Since Wal-Mart Stores, Inc. deals with a differentiated products (a wide range of products), losing sales has not been high even after the recession has been experienced in the U.S. This has been experienced in the year ending January 31st 2009, in which despite of the recession, the net sales have been very high at $401.2 billion, which has been an increase of 7.2% comparing with the previous year (Talley, 2009). Earnings per share have also been reported to be increasing since at the start of 2009, it was reported at $3.35, an increase of 6% (Talley, 2009). All these increase in performance can be attributed to the good marketing skills in which high quality products are sold at low prices. Their advertising slogan has been “Low prices, always” (Staff Writer, 2007). This slogan has been of great help and it has enabled the company maintain its high sales even during the recession period. Further, it should be notable that Wal-Mart Stores, Inc. has been socially responsible as it was noted after Hurricane Katrina in which they offered so much help to the victims and also promised jobs to all its displaced workers (Talley, 2009). This has helped the organization maintained customer loyalty thus increasing its sales greatly.