In what can only be described as a momentary lapse of the greedy party line, Walmart bluntly admitted in a quarterly report that their bottom line has been damaged by cuts in the SNAP program – the U.S. Government’s Supplemental Nutrition Assistance Program, also known as food stamp assistance.
The world’s largest retailer and the country’s biggest employer is also blaming bad weather for what they are predicting as a drop in profits for the first fiscal quarter of 2014.
Walmart’s chief financial officer Charles Holley said in the report:
[box type=”shadow”]“Walmart Stores Inc., the world’s largest retailer and the country’s largest single private sector employer, said it now expects sales at its namesake US stores and its Sam’s Club chain to be “slightly negative” for the quarter, which included the crucial holiday shopping period.[/box]
Previously the company forecast “relatively flat” sales at Walmarts and 0-2 percent growth at Sam’s Clubs. Walmart reports fourth-quarter earnings on February 20. The company had previously forecast underlying earnings of $1.60-$1.70 per share.
“Despite a holiday season that delivered positive comps, two factors contributed to lower comp sales performance,” said Holley, referring to sales at comparable stores.
Walmart also is being blamed for decreased profits for a failing business model. Fifty stores in China and Brazil have been closed due to poor planning and lack of foresight, lack of understanding the market. Chinese shoppers, for example, prefer to shop several times a week, buying very fresh food, while American shoppers prefer to shop once a week. Brazilians never could grasp the concept of not shopping around for a bargain, not trusting any one store to be truthful about having the best deals all the time.
Those clever Brazilians.
In the meantime, no slated changes to reinstate the corporate welfare called SNAP are on the legislative table.
h/t: Raw Story