death of wal mart yes or no?
Will someone destroy Wal-Mart? This is the big question many long term investors and value investors ask themselves these days. It is true that throughout history there have been a lot of large retailers that were one the biggest and then one day they just kind of faded away like the wind and either die or become a small fraction of the greatness that they once were. If you look back in history there seems to be a list of stores that are a fragment of what they once were. K-Mart was once one of the largest retailers in the U.S. which is now with Sears and a fragment of what it once was. Wards was another popular retailers of long ago which is now only a fragment of what it once was and had to declare bankruptcy awhile back. The list of large retailers that have either bit the dust or become a fragment of what they once were goes on and on the big question is……….WHAT WILL HAPPEN TO WAL-MART? Will Wal-Mart eventually die or shrink just like their counterparts of the past i.e. the “death of wal mart”? Can Wal-Mart survive through the fast paced economy that we have these days; is the "death of wal mart" a possibility? Nobody knows the answers for sure but there are a lot of theories about things that could kill Wal-Mart. Of course there is a great possibility Wal-Mart may simply stay in the market for many years to come without severe loss or bankruptcy. There are lists of things to consider when you talk about Wal-Mart being shrunk or going out of business. The first thing that I think is worth considering for the retailing community and not just Wal-Mart but other retailers is “how long can we keep getting stuff cheaply from China?” The next thing I ask myself is “how much longer can we keep getting fossil fuels or gas cheap enough to DRIVE long distances and get cheaper stuff from any store?” In other words in the future neighborhood markets may come back because it won’t be worth driving 15 miles to larger retailers when gas costs 6 dollars a gallon and most people are taking the buses to work. At this point the death of wal mart doesn’t seem like a very likely scenario because they have too much buying power. Buying power is the ability of a company person or institutions’ to get cheaper prices because they have the ability to buy in a higher volume of product or service usage. Even after considering all these things the possibility remains in the back of a lot of people’s minds about retailers like Wal-Mart. That’s why we have this handy comment box bellow that you are welcome to comment in about the possibilities of Wal-Mart- it’s one of those great investing secrets that we may never know until it’s too late.
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