{"id":1125,"date":"2011-02-22T11:18:50","date_gmt":"2011-02-22T15:18:50","guid":{"rendered":"http:\/\/retailprophet.com\/blog\/?p=1125"},"modified":"2011-02-22T11:18:50","modified_gmt":"2011-02-22T15:18:50","slug":"surviving-the-dual-economy","status":"publish","type":"post","link":"https:\/\/www.retailprophet.com\/2011\/02\/22\/surviving-the-dual-economy\/","title":{"rendered":"Surviving the Dual Economy"},"content":{"rendered":"<p>By Doug Stephens<\/p>\n<p>From the <a href=\"http:\/\/online.wsj.com\/article\/BT-CO-20110222-706340.html\">Wall Street Journal<\/a>, February 22<sup>nd<\/sup>, 2011:\u00a0 <strong>\u201cWal-Mart&#8217;s fiscal fourth-quarter earnings rose 27% as the retailer capitalized on strength in its international business. But on a same-store basis excluding fuel, U.S. sales fell 1.8%.\u201d<\/strong><\/p>\n<p>____________________________________________________________________________________<\/p>\n<p>Headlines like this one will become commonplace as retailers increasingly pack up their tents and set up shop in the robust retail climates of the world\u2019s emerging nations.\u00a0 Profits will soar while domestic unemployment rises or at least remains persistent; setting up an unusual economic dynamic as the economies of Wall Street and Main Street becoming increasingly disparate. \u00a0Nodes of corporate America will thrive while Americans struggle.<a href=\"http:\/\/retailprophet.com\/blog\/wp-content\/uploads\/2011\/02\/walmart-shanghai.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignright size-medium wp-image-1131\" title=\"walmart-shanghai\" src=\"https:\/\/www.retailprophet.com\/wp-content\/uploads\/2011\/02\/walmart-shanghai-300x196.jpg\" alt=\"\" width=\"300\" height=\"196\" \/><\/a><\/p>\n<p>In the case of Wal-Mart, a closer look at the numbers reveals that international sales rose by 8.9% with profit increasing by 7.1%.\u00a0 In the U.S., however, sales fell by 0.5% as profit rose by 4.8 on the back of tightened operations.\u00a0 While that\u2019s a good news story for those fortunate enough to hold stock, it will ring hollow for Wal-Mart\u2019s domestic workforce, suppliers and service providers. Here, the agenda for the future clearly includes <a href=\"http:\/\/www.reuters.com\/article\/2010\/10\/13\/us-walmart-idUSTRE69C09V20101013\">smaller stores<\/a>, tighter assortments and a focus on efficiency over scale.\u00a0 With Wal-Mart directly <a href=\"http:\/\/walmartstores.com\/pressroom\/factsheets\/\">employing<\/a> over 1.4 million U.S. citizens and indirectly employing millions more, cutbacks could send significant ripples through an already fragile economy.<\/p>\n<p>Wal-Mart is only one example of a trend that will be mirrored in hundreds of <a href=\"http:\/\/www.businessweek.com\/investor\/content\/nov2010\/pi20101111_471359.htm\">corporations<\/a> rushing to capitalize in foreign markets.\u00a0 And when you consider that 40% of all consumption is currently being driven by the top 20% of earners, the situation I\u2019m describing can only broaden that gap.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Doug Stephens From the Wall Street Journal, February 22nd, 2011:\u00a0 \u201cWal-Mart&#8217;s fiscal fourth-quarter earnings rose 27% as the retailer capitalized on strength in its international<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,1],"tags":[122,42,24,23],"class_list":["post-1125","post","type-post","status-publish","format-standard","hentry","category-news","category-uncategorized","tag-economics","tag-future","tag-retail","tag-trends"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Surviving the Dual Economy | Retail Prophet<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.retailprophet.com\/2011\/02\/22\/surviving-the-dual-economy\/\" 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