Skip to comments.Wal-Mart forecast disappoints, food-stamp cuts hurt customers
Posted on 02/20/2014 7:14:28 AM PST by SoFloFreeper
(Reuters) - Wal-Mart Stores Inc forecast a lower full-year profit than analysts expect, as fewer food stamps, higher taxes and tighter credit erode its sales, news that sent its shares down 1 percent in premarket trading on Thursday.
The world's largest retailer expects net sales growth this year to be at the lower end of its forecast range of 3 to 5 percent, Chief Financial Officer Charles Holley said on Thursday.
Wal-Mart said comparable sales at stores open at least a year in the United States - its biggest unit - fell for a fourth straight quarter, by 0.4 percent. Overall revenue in the quarter through January 31, which includes the key holiday season, grew 1.4 percent to $129.7 billion.
A major factor in Wal-Mart's U.S. performance was a "low-single-digit decline" in sales of groceries at stores open at least a year, which generate about half of its sales.
In contrast, supermarket operators Kroger Co and Safeway Inc reported comparable sales increases for their most recent quarters.
Wal-Mart's grocery sales have suffered from fewer food-stamp benefits resulting from U.S. federal budget cuts in November. One in five of its shoppers relies on food stamps, according to Cowen analyst Tal Lev.
(Excerpt) Read more at reuters.com ...
Uh, two things to take away from this:
1. If Wal-Mart isn’t doing well, the REST of the economy isn’t doing well.
2. If Wal-Mart depends that heavily on government subsidized shoppers for income, the subsidies need to be cut....Wal-Mart needs to sink or swim in the PRIVATE sector.
In my experience (and I worked in this industry for a number of years), if a Retail Exec misses his numbers forecast, he will grasp at ANY straw to try and explain that away.
Food stamp cuts, bad weather, political turmoil in Turkmenistan, Project HAARP, Chemtrails, Martians....whatever.
It’s all about “hang on to my job until annual bonuses are paid” and “keep stockholders from dumping their shares”.
Every time I go in the place it looks like 90% are in that category. That’s one reason I don’t go in that place very often.
What’s the percentage of voters on food stamps?
If you go to Walmart at the beginning of the month when the people on food stamps get a new infusion of funds on their EBT cards, you would think it is more like 80%. If you have to shop their at this time, the trick is to go there in the morning since most of them don't get up until noon.
That’s probably about right figuring around 15% of the country is on food stamps. Poor are more likely to shop at Walmart than at more expensive retail stores.
Another Walmart problem is their generic foods are dreadful... and known companies give them the bottom of the barrel of their production. Walmart’s slipping.
When 1 out of 6 Americans are on food stamps or EBT, the Walmart % data in the ball park.
“Why are 47 million Americans on food stamps? It’s the recession ... http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/23/why-are-47-million-americans-on-food-stamps-its-the-recession-mostly/ - -
“There’s a fairly basic question at the core of the current food-stamp debate in Congress. Why has the program grown so rapidly over the past few years to the point where 47 million Americans, one-sixth of the country, now receive food stamps?”
Depends on where one is. In some areas Wally World is the only large grocery store around. You can find almost anyone shopping there. In other locations that are more options and people shop by price.
I can see Obammy and Soros in a meeting on how to cripple the World Economy. “We must cripple Wal-Mart to achieve complete control over the economy. I’ve got it! Raise the minimum wage and force them to provide Obamacare care! It will kill their profits overnight!”
“BTW I sent you another check and am working on destabilizing some other governments so you can intervene and start another war you can’t afford. Just increase taxes to pay for it. Soon my son, the Middle Class (your only opposition) will be decimated, homeless, without food, and weak if not dead. Then and you can rule as you please, unopposed”
“Yes Master. Thank you Master”
If Wal-Mart isnt doing well, the REST of the economy isnt doing well.
Not to worry. Recovery Summer 5.0 will fix everything. Happy Days will be here again soon. Let the good times roll. /sarc
Around here, there's a local chain with better prices and better quality.
the trick is to go there in the morning since most of them don’t get up until noon.
LOL!!!! But I’m sure there’s a lot of truth to that.
Just can’t bear to go near our local Wal-Mart and tried out a store now owned by Safeway last night. If their sales are up I would have to say it is because the cost of their groceries are up. Buying fewer and fewer items each week and the cost keeps creeping upward.
My county has 30,000 residents. 6,000 are on SNAP. If they get SNAP, they get TANF, AFDC (or its equivalent), Section 8, EITC, ObamaPhone, heating assistance, electricity assistance, food banks, and all the other giveaway mess too.
You can drive by most any trailer in the county and the cars are there every morning until 10 or 11 AM....they can’t get up earlier than that because they are cranky when it’s that early. It upsets them.
The best time to go shopping at WalMart is in the morning before they wake up.
That's why Walmart opened grocery stores, to get on the government gravy train.
Their teriyaki beef jerky, honey-roasted peanuts, flavored waters and some bakery goods are top notch, better than any name brand imo. Most other stuff is junk like their soups which are 2c cheaper than same size Campbells but markedly inferior in quality.