Karma strikes: The Terrible Economy Just Claimed Another Victim: Walmart's U.S. CEO
http://www.huffingtonpost.com/2014/07/24/bill-simon-economy_n_5618045.html
The sluggish U.S. economic recovery just claimed another job. Bill Simon, CEO of Walmart U.S., is stepping down, Walmart announced on Thursday. Simon's tenure was marked by a long stretch of poor performance, but bad luck might have played a role in that: He held the post during a particularly terrible time for low- and middle-income Americans, who are also Walmart's core customers.
"His tenure perfectly parallels the worst economic period in the last 70 years," Charles Fishman, author of The Wal-Mart Effect, said of Simon. Simon became chief operating officer of Walmart U.S., effectively second-in-command of that business, in 2007, the year the Great Recession began. He became CEO of Walmart U.S. in 2010.
During the recession and the subsequent ongoing recovery, low- and middle-income Americans have been plagued by high unemployment, stagnant wages, benefit cuts and a proliferation of low-paying, part-time jobs at the expense of stable, salaried middle-class work. For Walmart, this means shoppers -- many of whom are also burdened by high levels of debt -- just aren't spending like they used to.
As a result, Walmart's bottom line is suffering. The company's U.S. sales have fallen in 12 out of the past 20 quarters at stores open a year or more, according to Ken Perkins, head of the retail data firm Retail Metrics. Walmart executives have repeatedly cited last November's cuts to the federal government's food stamp program as a reason for the company's poor performance.
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