FAYETTEVILLE, Ark. (KNWA/KFTA) – When the market closed on Tuesday, Walmart was down 11.4%, the worst day for the Bentonville native since 1987. Today Walmart fell another 7%.
National analysts agree with economist for the University of Arkansas, Jeff Cooperstein, that inflation has a hand to play in fiscal losses.
However, consumers switching to spending money on experiences and services rather than on non-essential goods has caused big-box retailers to have more stock than they know what to do with.
“The economy is still in flux, so we’re working to find the right balance of things,” says Cooperstein.
Estimated total losses for the Walton family in the last 48 hours are close to $20 billion.
But it’s not just America’s largest retailer who is feeling the effect; small local businesses are living even closer to the margins.
Eden Garrett is the owner of Eden‘s flower truck, a small business that just opened a brand new physical location in Fayetteville.
She says in the last several months, the price of wholesale flowers has increased dramatically, and record gas prices haven’t made the mobile part of her business any easier.
Eden Garrett “It used to be 150. Now it’s 280 something to fill the flower truck,” says Garrett.
Cooperstein says month-to-month inflation will likely continue to affect small businesses for the foreseeable future.
If we continue to see problems in the overall marketplace, the government raising interest rates won’t make it any better.