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 ...
Aldi’s!
Spot on. It’s a gravy train, literally.
“Safeway just shut down all its stores in Chicago, so of course their sales figures are up. What a dumb comparison...or intentionally misleading.”
Apparently, Safeway is looking for buyers, and they will be selling separately their successful gift card program for other merchants/stores.
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