Should Wal-mart increase their prices consumer spending would decrease in demand for their products

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Wal-Mart Consumption

Wal-Mart

Consumption

Wal-Mart the world's largest company continues to dramatically convert the retail setting by exploring new growth avenues, selling new categories of merchandise, operating in new geographies and business sectors, and appealing to new customers.  Wal-Mart along with other U.S.-based retailers continues to dominate the Food, drug, mass (FDM). Mainly, because of the strength among regional retailers, home-good retailers and by weaknesses among companies that operate in the soft goods sector. Wal-Mart was at the top of the list of retailers that benefited from the surge last year in retail spending, which also helped insulated them from the impact of a weak dollar. Soft goods struggled while homegoods led the way. Sales weakened by apparel deflation, the soft goods sector also posted much slower growth than the food, drug, mass sector and homegoods retailers which benefited from strong housing markets around the world.

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BEA (Bureau of Economic Analysis U.S. Department of Commerce), released a report that the major contributor to increase in real GDP in the third quarter) were personal consumption expenditures (PCE).  Non durable goods purchases increased 2.6 percent, compared with an increase of 3.6 percent.  This report did not list retailers, but I would imagine that Wal-Mart remains to be the leading retailer.  

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Consumption is the value of goods and services bought by people. Individual buying acts are aggregated over time and space. Consumption is normally the largest GDP component.  The economic performance is mostly judge by people base ...

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