Wal-Mart CEO Bill Simon: "Inflation is Going to be Serious"
h/t WC Varones
U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday.
The world's largest retailer is working with suppliers to minimize the effect of cost increases and believes its low-cost business model will position it better than its competitors.
Still, inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate."
It isn't going to be fun but since we know it's coming, what can we do to prepare?
My strategy has been to spend 'em as soon as I get 'em and I've taken to stocking up on items I know I use a lot that have a decent shelf-life. Absent taking out a loan for a house, a car and a bunch of credit cards, there really isn't much else to be done in an inflationary environment, assuming the increases will be passed on to the consumer in short order.
The reality here is that a lot of these price increases should have been and have been passed onto us already (I've mostly given up Starbucks now that my quad black eye runs me $5) and retailers like Wal-mart are in a better position to absorb some of them than, say, Mom and Pop stores. Do any of those actually exist?
Better hope you've got a garden, you'll be wishing you did before too long.