WALMART STUMBLES ON SNAP; WARNS OF LOSS PROFITS

Fri Jan 31, 2014 at 10:06 AM PST

Walmart Stumbles on SNAP; Warns of Lost Profits

by kavipsFollow

Saw this headline across quite a few feeds this morning.... Can't say it enough... I told you so....

Do you know the real reason?  

"Regarding U.S. same-store sales for the company’s fourth quarter, ending Friday, Wal*mart said it expects sales, excluding fuel, to be “slightly negative” to its earlier guidance of flat sales at Wal*mart stores "

Why are those sales negative?

Chief financial officer Charles Holley said Wal*mart saw a greater-than-expected negative impact from reductions in the Supplemental Nutrition Assistance Program, or food stamps. The cuts went into effect on Nov. 1.

Then it provides some right wing political cover by also blaming storms...

But as anyone will tell you, the excessive buying before a storm overcompensates for the loss of business from the storm, and that storm days are the primary money makers for those selling groceries... (No other food company is blaming storms, it should be noted.)

The economic impact of the Republican decision, and all their attempts to rebuff Democrat's attempts to keep that SNAP option at a higher rate, is very real.  If you owned 10,000 shares of Wal*mart stock, this morning in hours you lost $5,500... All because of Republicans... If your town has a million shares owned by all its citizens who invest in the stock market, your town just lost $550,000 dollars collectively, thanks to Republicans...

   Republicans only called out those eating with government money; called them lazy.. and un-American.  Those seeing the whole picture, were more concerned with how the economy would react... We predicted that some businesses would experience a 10% decline in food sales, matching the 10% decline in food stamps....

Now the recent cut agreed by the House just this week, will cut into that further...

So why is Wal*mart the most affected?  The answer is because it is cheaper.  If one is receiving SNAP (or Food Stamps) one is already poor and on a tight budget. It makes good sense if one has only $700 to spend a month, to try and get as many calories as possible for that amount of money.  The best place to do that is Wal*mart.

Wal*mart did this to themselves.  As one of the biggest funders to the Tea Party, Wal*mart is one of the few corporations responsible for putting the Tea Party Republicans in office.  Ironic then that the Tea Party chose to repay the favor by costing a few Wal*mart executives their jobs, through the cutting of SNAP... Wal*mart should have lobbyied their friends much harder to shelve or vote against it.  They and all other grocery chains now, should both advertise to the public and lobby the Senate, NOT to pass the Farm Bill with 8 billion of further cuts to that program....

The damage caused to all of society by not fully funding SNAP is severe compared to the consequences that would occur, if that money was saved by raising taxes on the wealthy....

   Retail Food is a huge engine of our economy. Putting water into the gasoline that feeds that sector, will have dire consequences,of which we are beginning to now see.  Wal*mart and other grocers need to get active on the Hill now, lobby against any SNAP cuts in the Farm Bill, threaten to withdraw funding for all rural conservative candidates,.. or face a rather dismal, ten year slump.....

Originally posted to kavips on Fri Jan 31, 2014 at 10:06 AM PST.
Also republished by Hunger in America.