Trump’s Walmart is a “total and total and complete failure” and “a complete waste of money,” the conservative American Enterprise Institute (AEI) declared today, arguing that the chain is a product of corporate greed and incompetence.
In an article titled, “Walmart Is A Total and Complete Disaster,” AEI’s Robert Samuelson wrote that the company is “in danger of becoming the next Target” and that “this is the beginning of the end of American manufacturing.”
The company has long been criticized for its profit-driven, over-priced products, including clothing and appliances, but Samuels’ piece is the first time he has labeled it a disaster.
“Walmart is a total and total failure, as a company, as an institution, as its corporate board of directors, and most importantly as a person,” Samueltonsays.
“Its corporate culture is a complete disaster, and its leadership is an utter failure.”
In its initial public offering in 2018, Wal-mart had an earnings loss of $10.4 billion, which Samueltsaid is the largest for a publicly traded company in U.S. history.
In the first half of 2019, it was estimated to have lost $17.9 billion, with the average loss per share being 7.5 percent.
Walmart’s stock is up nearly 10 percent in the last 24 hours, to $65.75 per share, while its dividend has been paid out to shareholders for nearly a decade.
Samuels article, “The Worst Thing That Wal-Marts Ever Said About Trump,” argues that the retailer’s profit-centric culture and lack of innovation have allowed it to thrive in an environment where consumers are being forced to pay high prices for goods that are not up to par.
The article, titled “Wal-Mart Is A Complete Disaster” argues that Wal-marts corporate culture has led to a lack of accountability and transparency and that the current CEO is “unsuitable for the role” and should step down.
It also contends that Walmart’s corporate governance structure is “a total disaster,” with the board of managers being unaccountable and “unaccountable” for decisions made.
Samuells comments come as the company faces increased scrutiny from the U.K.’s Office of Fair Trading over a spate of cases involving the sale of fake or inferior goods.
The retailer was also hit with an international price-fixing scandal in March when it settled charges that it allowed fake goods to be sold on its site.