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Why is Wal-Mart worried? Payroll tax could cut consumer spending.
CSM
Recent reports forecast lower spending for this year, anticipating that the restored payroll tax will impact consumers’ wallets, especially low-income earners. Wal-Mart is adjusting its strategy.
New York
Retailers are preparing for a triple whammy as the restoration of the payroll tax, surging gas prices, and stagnant employment and wages take a bite out of consumers’ disposable income, leaving them with less cash to spend on clothing, groceries, and eating out.
As a result, more than three years after the recession officially ended,
(SNIP: More than three years after the recession officially ENDED? Bwaahahahaha)
American consumers might be preparing to downshift again, if only slightly, with low-income consumers hit the hardest. Sensing consumer trepidation, retailers are scrambling to adjust.
Retailers, restaurants, and consumer goods companies like Wal-Mart are lowering sales forecasts and adjusting marketing campaigns ahead of expectations that consumers will slash spending, the Wall Street Journal reports.
In a survey released Thursday, the National Retail Federation (NRF) said some 46 percent of consumers plan to spend less as a result of the payroll tax increase. One-third said they will reduce dining out and one-quarter will spend less on “little luxuries,” like manicures and trips to coffee shops.
Kenny Sullivan
February 23rd, 2013
I would think that the worse the economy, the better Wal-Mart would do…they do take EBT cards don’t they?
Hanoverfist
February 23rd, 2013
The left hates Walmart.(and all open markets)
So this must be thier feel good story of the week.
Tim
February 23rd, 2013
“One-third said they will reduce dining out and one-quarter will spend less on “little luxuries,” like manicures and trips to coffee shops.”
We can’t cut out what we don’t do. Wife and I, literally, don’t do any of these things.
Unless Popeye’s Drive-Through is “dining out.”
OneLastTime
February 23rd, 2013
Everything will be better when the minimum wage is raised to $50/hour. You’ll see.
eternal cracker p
February 23rd, 2013
So when a dollar is taken from a poor person they can’t spend it. But when a dollar is taken from a rich person, they can still spend it?
Who has the most dollars taken away?
Color me confused.
Jerry Manderin
February 23rd, 2013
I HATE THE LEGISLATIVE BRANCH, THE JUDICIAL BRANCH, AND MOST ESPECIALLY THE EXECUTIVE BRANCH RIGHT NOW.
serfer62
February 23rd, 2013
Its probably going to expand their clientel when economics raises its ugly head
kvn
February 23rd, 2013
ObamaCare Recession. Brace for it. And this one will really hurt, Obama redistributed all the lube to Reggie Love.
Sicktoy
February 23rd, 2013
Whew – glad I know recssion has been over for 3 years…
Major Mal function
February 23rd, 2013
The Chinese must be terrified.
bitterclinger
February 23rd, 2013
What a bunch of horse shite. Wally World quit selling/restocking ammo. Second Amendment folk are speaking.