Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wordpress-seo domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/html/wp-includes/functions.php on line 6260 The End of Consumerism? - Beauty Packaging

What are you searching for?

Sign in
Beauty Industry

The End of Consumerism?

Wal-Mart CEO sees a fundamental shift in U.S. economy.

Author Image

By: Jamie Matusow

Editor-in-Chief

Is a fundamental change taking place in the U.S. economy? Yes, if you believe H. Lee Scott, chief executive officer of Wal-Mart Stores, Inc. Speaking for the last time as CEO of Wal-Mart at the National Retail Federation’s 98th annual convention, Mr. Scott predicted the first half of 2009 will be “extraordinarily challenging. In the second half you’ll have a rough spot against the stimulus package. It will be moderately better next year. I don’t see anything that says it will turn around swiftly.”

The economy will turn around some day—but don’t expect conspicuous consumption to make a comeback, he insisted.

Although Wal-Mart was one of the few bright spots during the holiday selling season, Mr. Scott said that some of the big issues—47 million uninsured Americans, U.S. dependency on foreign oil, a decline in education system—are problems that must be addressed in order for the U.S. to the ship.

Still, he admitted that consumers have the money, just not the will to spend it. For example, Wal-Mart posted a 25% increase in the sale of flat-panel TVs during the holidays, but Mr. Scott said that consumers won’t spend the money on just anything; as a result, retailers must do a better job of understanding consumer behavior and their own inventories.

Another speaker at the NRF convention, Stacy Janiak, Deloitte’s vice chairman, national retail leader, told the audience that consumer spending in the U.S. will not return to former levels. Instead, the economy will be driven by an increase in government spending.

Add us as a preferred source on Google

Get the latest Beauty Packaging news, insights and analysis in your Google Search and AI experiences.

Add Beauty Packaging as a preferred source on Google (opens in a new tab)

Keep Up With Our Content. Subscribe To Beauty Packaging Newsletters