Thursday, June 14, 2007

Wal Mart (WMT) and its Shrinkage Problem

Wal Mart's "Always Low Prices" slogan is taking on an extreme meaning for shoplifters who are helping themselves to merchandise and getting away with it: Wal-Mart Struggling With Rising Loss From Shoplifting And Employee .... That article has an amazing figure - that the company loses more than $3 bln, or 1 percent of total sales to so called "shrinkage". Mr. Sam has got to be rolling in his grave as a buffoonish effort to enhance profit margins by present top brass through cutting staff, including store detectives, has led to a literal backdoor disappearance of those margins.

Call me a snob, but I just can't imagine what anyone would covet from Wal Mart whether they pay for it, or steal it! Ok, that was a cheap shot since even I occasionally step into a Wal Mart to buy light bulbs, microwave Dinty Moore, or Dristan. I just find the blue-themed stores to be blues experience that I try to avoid both as a shopper and as an investor.

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