Walmart is the largest U.S employer. It’s an economy all by itself. So if you want to know what direction things are headed in, just look at Walmart.The future of Walmart, the future of the U.S.
A week ago we found out that Walmart was planning to make some very big changes to their business. Walmart spokesmen announced that they would close 269 stores and layoff over 16,000 employees. Now what is very interesting is that companies like Target, JCPenny, Macey’s and Walmart are closing a lot of stores and laying off thousands of workers. But at the same time we are not hearing companies like Kroger, Albertsons, H.E.B or other grocery stores laying off thousands of workers and closing hundreds of stores. Well, the fact is that most grocery stores just sell food or food related products. Most grocery stores are not diverse and carry anything that you can imagine.
Now years ago, Walmart’s business model worked. It was a really great idea to have everything that you could ever imagine under one roof. It made things so much easier to just go to one store and buy everything that you needed instead of having to go to multiple stores.
But times are changing. But although times are changing, somethings will never change. Stores that carry the basic necessities of life will always be around while every other store collapses and dies. Just stop and think about that for a minute. Everybody needs food. But do people need t.v’s? The answer is no. People don’t need t.v’s. So if you want to have a business that lasts, you need to offer something that everyone will want and need.
As of today, the Baltic Dry Index, which is an indicator of global trade has fallen to a new record low of 355. What this lets us know is that global trade has slowed down to almost a point of standstill. So when you go into a Walmart, take a look around , and see where everything is from. Almost everything, except for food, comes from China. Most of the food comes from the American Heartland. So stop and think about it. If global trade is slowing down to a standstill, where is Walmart getting everything to stock it’s shelves. The answer is simple. Walmart has warehouses that supply their stores. These warehouses are huge. Actually huge is an understatement. Walmart Distribution Centers are over 1 Million square feet in size and support 90- 100 stores each.
Walmart’s 158 distribution centers are hubs of activity for our business. Our distribution operation is one of the largest in the world. Walmart logistics has a fleet of 6,500 tractors, 55,000 trailers and more than 7,000 drivers.
A regional distribution center can have up to 12 miles of conveyor belts, which can move hundreds of…