Wal-Mart squeezed, Saks “full-priced selling at record levels”

From NY Times:

Wal-Mart, the country’s biggest retailer, said it had posted a quarterly increase in sales at stores open at least a year after nine consecutive quarters of declines in that important measure. But its third-quarter profit took a hit as the retailer chose not to pass on all of its price increases to consumers.

Company executives said they were not confident that Wal-Mart shoppers could afford more expensive goods.
“Our customers are still feeling pressured to reduce expenses wherever they can,” said William S. Simon, president and chief executive of Wal-Mart United States. “Cost increases in numerous categories were not passed on to our customers in the form of increased prices.”

At the other end of the retail spectrum, Saks said Tuesday that its revenue had risen 5 percent, to $692.3 million, from the same quarter a year ago. Its same-store sales, sales for stores open at least a year, rose 5.8 percent.

“Full-price selling is at record levels,” Mr. Sadove said. “We’re now in a less promotional environment than we were before the recession.” At Saks, profit fell by 51 percent, to $17.8 million, in the quarter. But that was a tough comparison with the third quarter of 2010, when profit was pumped up by a gain related to tax reserves.”

Two Americas in two economies.  I see the same thing here in Dayton between the upscale and average grocery store — both venerable locally owned businesses.  From the products to the expressions of the shoppers and clerks…two different worlds.  We were once held together in a domestic economy.  Now just miles apart we face separate fates.

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National economies no longer hold us together.   Our political communities no longer forge us together in a shared fate.  Politics no longer provides a ready means for solidarity accross such divides.  I wonder how solidarity can be fostered in such a divided economy. 

Please share comments about communities and especially about Churches that are successfully supporting solidarity accross these divides.

Vincent Miller is Gudorf Chair in Catholic Theology and Culture at the University of Dayton. He is the author of Consuming Religion: Christian Faith and Practice in a Consumer Culture.