» News

Why is Wal-Mart worried? Payroll tax could cut consumer spending.

Home - by - February 23, 2013 - 15:00 America/New_York - 11 Comments

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.

MORE   http://www.csmonitor.com/Business/2013/0222/Why-is-Wal-Mart-worried-Payroll-tax-could-cut-consumer-spending?nav=87-frontpage-entryLeadStory

» 11 Comments

  1. 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?

    Thumb up +3

     
  2. Hanoverfist

    February 23rd, 2013

    The left hates Walmart.(and all open markets)
    So this must be thier feel good story of the week.

    Thumb up +1

     
  3. 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.”

    Thumb up +2

     
  4. OneLastTime

    February 23rd, 2013

    Everything will be better when the minimum wage is raised to $50/hour. You’ll see.

    Thumb up +4

     
  5. eternal cracker p

    February 23rd, 2013

    leaving them with less cash to spend on clothing, groceries, and eating out. .. with low-income consumers hit the hardest.

    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.

    Thumb up +2

     
  6. Jerry Manderin

    February 23rd, 2013

    I HATE THE LEGISLATIVE BRANCH, THE JUDICIAL BRANCH, AND MOST ESPECIALLY THE EXECUTIVE BRANCH RIGHT NOW.

    Thumb up +3

     
  7. serfer62

    February 23rd, 2013

    Its probably going to expand their clientel when economics raises its ugly head

    Thumb up 0

     
  8. kvn

    February 23rd, 2013

    ObamaCare Recession. Brace for it. And this one will really hurt, Obama redistributed all the lube to Reggie Love.

    Thumb up 0

     
  9. Sicktoy

    February 23rd, 2013

    Whew – glad I know recssion has been over for 3 years…

    Thumb up +1

     
  10. Major Mal function

    February 23rd, 2013

    The Chinese must be terrified.

    Thumb up 0

     
  11. bitterclinger

    February 23rd, 2013

    What a bunch of horse shite. Wally World quit selling/restocking ammo. Second Amendment folk are speaking.

    Thumb up 0