The devil wears Walmart


You've probably heard the story about the Lexus in the Walmart (WMT) parking lot. Or the Costco (COST) shopper stuffing the 48-roll pack of toilet paper into the trunk of a Mercedes-Benz. Like an urban legend, the details differ, but the gist is the same: Even the rich have downsized their shopping.

Except this isn't a myth, according to most retailers. Wealthy shoppers are still shopping, but they're buying private-label clothes at department stores and designer goods at outlets. So stores that cater to them are downscaling the merchandise, offering more private labels and cutting prices on designer items.

Originally published