Retailers, consumers and prices
Wal-Mart: Babies too, are living paycheck to paycheck
In one of the more chilling consumer spending anecdotes thus far, a Wal-Mart executive told a lunch crowd in Los Angeles that more of its customers are waiting to have paychecks or government assistance checks in hand before they buy necessities like baby formula.
“We have started to see some very disturbing behavior,” said Eduardo Castro-Wright, president and chief executive of Wal-Mart’s U.S. operations.
The world’s biggest retailer already has said that its U.S. shoppers are increasingly living paycheck to paycheck as the economy worsens and credit gets harder to come by.
On Tuesday, Castro-Wright said Wal-Mart has noticed a spike in sales of baby formula when checks are issued at the beginning and the middle of the month — a trend that suggests consumers are rushing to buy basic necessities when they have cash.