Tuesday, January 13, 2009

Walmart CEO provides some interesting insights

I think there has been a fair amount of anecdotal research to support the thesis that consumers are retrenching. The concern that many businesses have is that this shift in consumer habits may become permanent.

Yesterday, Walmart's outgoing CEO made some interesting comments to that effect.

"The recession, he said, could fundamentally change the way consumers live, adding that he’s “not convinced” that people will be willing to take on additional debt for a long time. "

"I'm not necessarily convinced that just when all this liquidity and things hit, if you're going to have the same immediate desire to go back to consumption and debt," he said, referring to a potential U.S. government stimulus plan.

"There are a lot of young people who have learned what it's like when you are living on the edge and the bad times come."

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