Walmart....what recession?

[jaxnative]

Wal-Mart awards $2 billion to U.S. hourly employees

CHICAGO (Reuters) â€" Wal-Mart Stores Inc is awarding approximately $2 billion to its U.S. hourly employees through financial incentives, including handing out $933.6 million in bonuses on Thursday, after the world's largest retailer gained market share amid a recession.

In a memo to Wal-Mart employees obtained by Reuters, Wal-Mart CEO Mike Duke said the retailer is awarding roughly $2 billion to U.S. hourly employees, which includes $933.6 million in bonuses, $788.8 million in profit sharing and 401(k) contributions, millions of dollars in merchandise discounts, and contributions to its employee stock purchase plan.

"While economic challenges forced others to step back, we moved forward," Duke stated in the memo.

Duke said Wal-Mart now needs to "accelerate and broaden all of our efforts."

As consumers seek to stretch limited budgets, they are increasingly heading to Wal-Mart's U.S. stores for discounts on everything from food to televisions. Wal-Mart is also aggressively touting its low prices to attract shoppers, and the retailer said on Thursday that it is cutting prices on contact lenses and children's glasses.

The efforts are helping Wal-Mart gain market share while other U.S. retailers see sales fall as shoppers avoid splurging on nice-to-have items, like sweaters or jewelry.

For its fiscal year ending January 31, 2009, Wal-Mart's total sales rose 7.2 percent to $401.24 billion. Sales at its U.S. stores open at least a year, or same-store sales, rose 3.3 percent, excluding fuel, in its recently completed fiscal year, up from a 1.4 percent gain in the previous fiscal year.

A year ago, Wal-Mart said it awarded almost $1.2 billion in financial incentives to its U.S. hourly employees, including more than $636.4 million in bonuses, which are based on store performance.

Wal-Mart shares declined 0.7 percent to $50.07 around midday on the New York Stock Exchange.

Can you imagine the union leaders squirming in discomfort.  Maybe they can lobby their congressional and administration supporters to create some rage against the Walmart executives.  They didn't get any bailout money but they are just not going along with this plan to drive the economy into the ground.

[BridgeTroll]

Is someone being forced to work there?  What am I missing?  People must be buying things.  Apparently a whole lot of people find it awesome....

[jaxnative]

Of course, no proof was offered that the US wasn't in a recession.  The knee jerk response was typical of the vile hyperbole that is constantly repeated by those whose interests are to demonize one of the greatest business success stories in this country.  Walmart is thriving while the country is in recession and doing it without a union to drive it into the ground.  If a false sense of moral superiority keeps one from shopping at WalMart just drive on by and try not to block traffic going in to the store.

[BridgeTroll]

I was commenting on your comparison of Walmart workers to slaves.  Seems to me the most vocal about the slave wages are those that do not work there.  I avoid shopping at Walmart because I really hate the crowds.  The parking lot is SO damn full of people shopping I cannot enjoy myself.

Looks like a pretty successful business model...

[jaxnative]

I avoid shopping at Walmart because I really hate the crowds.  The parking lot is SO damn full of people shopping I cannot enjoy myself.

I agree with ya.  If I do have to go there I usually go later at night.

[Jason]

I think it simply boils down to the fact that Wal-Mart products are less expensive and more and more people are becomming cost concious.  Its a win-win for discount type retailers.  The beauty of it is you can buy damn near everything you need in one stop.

Side note: I hate Wal-Mart!