Wal-Mart always seems to do well. When the economy grows, its core users spend more on Wal-Mart goods, offsetting the substitution effect that sends its noncore users to more expensive stores.
When the economy shrinks, its core users have less to spend but the substitution effect goes in its favors as noncore users can no longer afford more costly alternatives.
Ultimately global retail growth and its ability to control its supply chain determine profits. Regardless: Wal-Mart keeps the lights on in all scenarios.
That’s probably why it’s hiring 22,000 people this year (down from last year, but still…). These new hires will be concentrated in Arizona, California, Florida, Michigan, New Jersey, South Carolina, Utah and Virginia. Check out the article here.
