I’m really getting disgusted by all the Wall Street gnomes doing Snoopy happy dances over Wal-Mart’s bump in sales because people who have been living on the edge in a nose-diving economy are forced to spend the dollars they have left in their pockets at Wal-Mart.

Are we finally wringing the neck of our remaining golden goose?

From The Associated Press:

As consumers scale back on spending in the face of a softening U.S. economy, at least one analyst suspects that more shoppers are choosing Wal-Mart Stores Inc. over rival Target Corp.

Sagging home prices, higher gas prices and job cuts have Americans paying close attention to how they spend their money. Investors are taking note — since late November, shares of Wal-Mart have soared, outperforming Target by double digits. Target shares are testing year-plus lows, while Wal-Mart touched a nearly three-year high earlier this month.

Despite weak consumer spending, Bentonville, Ark.-based Wal-Mart last week posted a 4 percent higher fourth-quarter profit, helped by a renewed focus on low prices and big holiday discounts.

And, just so you know, I’m even more disgusted by the continued use of euphemisms like a softening U.S. economy. People who talk like that don’t have a firm stance in reality.

Like this gnome.

Citi Investment Research analyst Deborah L. Weinswig said Wal-Mart’s “low-price message” resonates better with consumers, who are trying to scale back on spending and get the most for their dollar. “Based on our proprietary survey findings, an overwhelming 87 percent of customers surveyed said that Wal-Mart had the lowest prices,” Weinswig wrote in a note to investors.

Weinswig also said Wal-Mart provides a “one-stop shopping experience” for consumers, allowing them to purchase food, consumables, groceries, and discretionary items in one visit.

This consolidation is important because consumers have been consolidating trips to cut down on gas use.

“Target is not perceived as a destination for basic needs, which we believe is why the retailer’s traffic trends are weaker than those of Wal-Mart,” Weinswig wrote.

One-stop shopping experience?

Cue Tennessee Ernie Ford.

What disgusts you?

Jeff Hess: Have Coffee Will Write.

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This entry was posted on Friday, February 22nd, 2008 at 0637 by Jeff Hess and is filed under Video, Wall Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.