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Desperate times: Shoppers cut back on baby formula

Posted Oct 22 2008, 12:03 PM by Anthony Mirhaydari
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Point-of-sale data from Wal-Mart shows that the pressure on America's consumers has reached a critical level. In what CEO Eduardo Castro-Wright calls a "disturbing" trend, the retailer is seeing a surge in baby formula sales when people cash their paychecks -- a sign people are putting off formula purchases until the last minute.

According to a recent poll, personal financial security was the number one concern for 80% of Wal-Mart's shoppers, up from 65% a few months ago.

But the fact that more than a few families are forced to cut feedings to their newborns or change to breastfeeding should be worrying for retailers heading into the holiday season, policymakers trying to ward off a deep recession, and those concerned for the youngest among us. Moreover, things are likely to get worse before they get better.

Americans are cutting back as asset values fall, unemployment rises, credit becomes more scarce and prices for food and fuel remain elevated. Wal-Mart's data also showed a double-digit drop in credit as a form of payment, which indicates that many shoppers have maxed out their credit cards. These shoppers are reverting to a paycheck bound feast-or-famine shopping cycle.

Relief could come in the form of a second economic stimulus package, which is gaining bi-partisan political support. The idea was recently endorsed by Fed chairman Ben Bernanke, who called it "potentially helpful and worthwhile" and said "consideration of a fiscal package by the Congress as this juncture seems appropriate." Bernanke went on to specify that any package should include measures to increase credit availability to homebuyers and consumers.

Instead of more money in the mailbox, lawmakers are focusing on infrastructure spending, aid to cash strapped states, and increased funding for food stamps and unemployment benefits. For those worried about baby formula, the help can't come soon enough.

Disclosure: I don’t own or control shares in any of the companies mentioned. I can be contacted at anthony.mirhaydari@live.com

Related reading:

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The failure of the American consumer

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Some good news: Food prices on the decline

Comments

 

People arent spending there money in walmart on these overpriced products anymore.  They are buying them from Craigslist and Ebay.  Try putting a baby on a special diet that costs $26 for a can that last 3 days when a can that last twice as long costs exactly the same.  You can buy the same exact products online for half the price and actually get more.  I spent $75 on 6 cans that would have costs me $150.  People are finding even better deals out there.  These companies better be prepared for this to get worse for them because people are finding new ways to save there money and baby formula is only the beginning.  

Kristin, did exactly that 18+ years ago; breastfed both my darlings for over a year & used cloth diapers.  was actually sad the day I did my last load of cloth diapers.  enjoy this time w/your little one; it goes by MUCH too fast.  hugs.

Since Wal-mart importing everything from China for so long is partially to blame for our current economic woes; perhaps they should sell baby formula for their cost (and this is NOT something they should import from China)!

P.S. Duke - "people are always complaining about something, it's pathetic, THE ECONOMY IS FINE!"   -

WHAT THE HELL ARE YOU SMOKING?

A few things guys, breastfeeding rates are rising yearly because people have figured out how great it is for babies.  also they may want to look at the number for quality breastpumps those numbers have gone up too.  A good pumpn costs about as much as two months worth of formula.  I also agree that buying your food and neccessities once a month or at payday is not a indicator of bad economy but a sign that people are watching what they spend.  FINALLY.

Formula is extremely expensive.  My wife *** feed as long as she could.  My son has acid reflex, therefore he needs special formula.  The thing that pisses me off the most is every different kind of formula Enfimil makes also makes a knock brand  (Parent Choice) that is half the price and you can also get 25% more, except in the formula I need.  So instead of having the option to spend $11.88 or $25.82 I have only one choice $25.82 because Parent Choice does not make this special formula I need.  It makes ever other kind but mine.  COMPLETELY RIDICULOUS!!  

Could it be that people are conserving gas and making fewer trips to the store, so they stock up on payday instead of running in and out of the store more often?  Could it be people are buying formula elsewhere?  I noticed it is cheaper at our grocery store than it is in Wal-mart.  I hope, though, that more people are realizing that breastfeeding is better for both baby and mom, and are taking that route....  but barring that explanation, I think there are a lot of things that need to be considered before you can say that people aren't feeding their babies like they should....

oh, & probably saved a ton of $$$$$$ doing it; would do it again if I had the chance.

Ana--  

You can take anything personally if you chose to, the number of people like yourself who can't breastfeed are tiny.  Most people wean to formula for convenience and you can ask them they will tell you so.  Quit being a baby ,IT"S NOT ALWAYS ABOUT YOU.

Duke, you are a fool!!! saying our kids are fat just shows you know absolutely nothing about how to raise a newborn child. THEY NEED TO EAT TO STAY ALIVE!!!! i am sure your mother did not say that you were to fat and stopped feeding you for a few days. by the way, the economy is far from fine. you must be a BUSH BACKER to make such a moronic statement like that. have you seen what the markets are doing, have you checked your 401k, do you even have a 401k or any other investments. THINK BEFORE YOU SPEAK. MORON!!!!!!

It is really upsetting that so many people on this post are blasting mothers who choose to formula feed instead of ******feed.  Who are you to say they are making the right or wrong decisions for their kids?  Unless you are the parent in the situation making the decision, screw you.  It's absolutely ridiculous that you should dictate what decision another parent makes for their child.  I have two boys, both formula fed, who are some of the healthiest kids I know.  They don't see the doctor unless its time for their annual check ups.  I also have two neices, both ******feed, who are in and out of the doctors office every other week.  Now I'm not saying that formula is the way to go, or that ******feeding is the way to go.  My only point is that it's up to the parent of the child who's being fed, and that nobody else has any right to tell the parent that they are making the right or wrong decision for that child.  Back off and mind you're own freaking business.  As long as the parents feel like they are making the right choice for THEIR CHILD  (NOT YOURS), then who cares...

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