aTypical Joe: a gay New Yorker living in the rural South

Monday, November 27, 2006

Walmart’s woes

The other day, moments after I posted about the AFA’s effort to sign up 1,000,000 families to boycott Wal-Mart because they automatically donate 5 percent of online sales directly to the Washington, D.C., community center for gay, lesbian, bisexual and transgender people!, they called off the boycott.

The relationship with the National Gay & Lesbian Chamber of Commerce continued on course according to their joint statement but still the American Family Association started sending out thank yous because Wal-Mart issued a statement saying it has no position on same sex marriage and doesn’t give preference to gay and lesbian suppliers.

Too bad for the AFA. Had they waited until this week they could have gotten the statement and claimed credit for a November sales drop that may well end up being the first month-to-month decline for Wal-Mart in more than a decade.

Marketplace today:

KAI RYSSDAL: Gas prices are relatively low. Consumer confidence is steady. So it all adds up to a worrying sign for the world’s largest retailer. The company points to poor sales of its trendy new fashion line. Disruptive store remodelings too. But retail analyst Howard Davidowitz says Wal-Mart’s strategy is at stake.

HOWARD DAVIDOWITZ: If you’re selling to the half of Americans who have record debt, sub-prime mortgages, optional adjustable-rate mortgages, 20 percent of Wal-Mart customers have no savings whatsoever. If you’re focused on that customer mix, which are the most vulnerable in our society, I think you have a problem because those folks are under water.

Gosh, tell us what you really think Howard:

DAVIDOWITZ: “If you upgrade merchandise in organic food, you’re OK - which they’re doing. If you do it in electronics and home, you’re OK. I think you have to be real careful with apparel - that’s an image issue, and Wal-Mart doesn’t fit a fashion image.

I have to agree you’re not likely to find Chelsea queens or West Hollywood hunks donning Wal-Mart’s gay apparel. Still, Howard closes on an up note:

The name of the game for them is to sell those customers more. Can they do it? I think they can. Will they do it? I think they will.