Walmart - "February Sales are a Total Disaster"

Internal Walmart executive email states that February sales are a 'total disaster'. Walmart financial execs blame the Obama adminsitrations increased payroll taxes and the delayed federal tax returns.

They think this is bad .. wait until the Obamacare fees get going! When we did our taxes at HR Block, the preparers were all talking about how next year will see a lot of ticked off people when they learn that they have to pay penalties because of Obamacare. People think they'll get 'free healthcare', but instead they'll have less money to spend in places like Walmart, etc etc

Reuters

Wal-Mart executives blamed the poor sales performance on increased payroll taxes as well as delayed tax returns, Bloomberg said.

Higher payroll taxes this year are seen as a potential problem for Wal-Mart and other discount retailers that try to attract lower-income customers who have less disposable income.

"In case you haven't seen a sales report these days, February (month-to-date) sales are a total disaster," Jerry Murray, a Wal-Mart vice president who works on finance in the U.S. logistics division, said in a February 12 email to other executives, Bloomberg reported. "The worst start to a month I have seen in my (about) 7 years with the company."

RELATED -

USA Today - Payroll Tax Increase may Nick Consumer Spending

A payroll tax increase of 2 percentage points has hit workers who have received their first paychecks of the year, and has many determining how they will cut back in 2013.

The tax increase came when Congress decided not to renew a temporary payroll tax reduction as part of the fiscal cliff negotiations at the end of December. The rate returned to 6.2% as a result.

While the increase won't likely have a significant impact overall on the economy, it could change buying habits and where people choose to shop, especially for lower-income households, economist Joel Naroff says.

"escpecially lower income households" .. like those who shop at walmart.

CNBC - Payroll Tax Hike Will Affect Your Paycheck and the Economy

The sting from higher taxes in your first 2013 paycheck is also going to sting the economy this year, particularly in the first quarter.

As of Jan. 1, the payroll tax that funds Social Security was raised two percentage points to its 2010 level of 6.2 percent. It is also by far the biggest component—$125 billion of the $190 billion—in tax increases approved by Congress to fend off a bigger wave of tax hikes from the "fiscal cliff." Economists expect it to pare as much as 1 percent or even more from first quarter growth on an annualized basis.

As Walmart goes ... so goes America ...

The sheeple will not put the blame where it lies. They will not wake up until it is too late. There will be lie upon lie to spin the facts for political gain and the sheeple will lap it up.

reply to post by FlyersFan


That's kind of a subjective statement "February Sales Total Disaster" I would really like to see the numbers but I would also suspect that they are not immune from the financial climate of today...maybe when all these big box stores shut down we can eventually get back to the mom and pop stores in our neighborhoods...

Man, when Walmart starts to go downhill, you know it's all over with and the economy just got real. Looks like reality has finally started to hit.

It often makes one wonder if maybe the world will hit the slow
down button one day, just get tired of it all being about the
big rat race, the 24/7 non stop business, maybe even have
a day again where all the shops actually close and we ALL get
a day off together, wow that would be nice but i doubt it
will ever happen, no rest for the wally world, or for us,
their sales eventually have to drop, i mean honestly you cant
always always expect growth.

I have a feeling its going to get worse before it gets better.

But that's what these guys voted for so I have little sympathy. At least the welfare checks are still rolling out.

All part of the liberals plan to create a permanent welfare voting bloc.

Originally posted by chrismarco
That's kind of a subjective statement "February Sales Total Disaster"

I'm just reporting what the internal memo said.
It was put out by the Walmart executives who have access to their financial info.

'total disaster'.

And I've got a feeling that the H&R Block fellas will be right. Next year when people go to do their taxes, they are going to be in for a shock when they find out that they owe penalties for not buying Obamacare.

Originally posted by chrismarco

maybe when all these big box stores shut down we can eventually get back to the mom and pop stores in our neighborhoods...

Youre in 2013 now, bud. Mom and pop stores are in the same category as parachute pants and disco at this point, as in, there all gone. And with how ridiculously difficult its been deliberately made to start a new business, they aint comin back.

Same here in the UK, apparently economists were "baffled" by low sales in January lol.

reply to post by FlyersFan


Yeah, next year is gonna be a big shocker for a lot of folks. No more head of household deduction, no more mortgage interest deduction, Obamacare penalties = ##SNIPPED##.... I can't wait to see the response from folks when H&R block says they need two checks, one for preparing their taxes and the other to the government.

I've been telling my buddies that voted for this administration about all the upcoming changes, but they're in a River in Egypt.... Sad and funny at the same time. Ya reap what ya sew. Hang on tight, it's gonna be a bumpy ride!

Just a random question, how do U.S wages generaly adjust for inflation?

What will be your increase in wages this year?

Generaly in the UK wages increase around 2% yearly to adjust for inflation, however inflation is really 3 to 3.5% lol.

So we always earn less than the cost of living.

And ultimatly, thats why we are struggling, the governments low interest on lending and tax cuts should easily offset any difference for employers to raise wages to cover more than cover the cost of inflation, but they dont. I do not understand why, they just dont.

I propose two other options Walmart ought to look at. One is the rising food prices. The higher the price goes means that I am not going to be able to buy as much. The second thing is people who are taking their business elsewhere. I am one of these people. I can't stand the fact that over the years I have to encounter more and more walmart brands on the shelf, shrinking portions but same or higher price, incompetent workers, and outrageous freaking lines. I just rather go to other stores for my groceries and other necessities.

As far as disaster sales, guess walmart ain't used to losing a few millions on the huge profits they make.

Originally posted by Tuttle
Same here in the UK, apparently economists were "baffled" by low sales in January lol.

Isnt it interesting how all these "experts" and "professionals" that the MSM likes to parade around in front of us and tell us what to think are always so "baffled" by the simplest of things that an uneducated 10 year old would find an easy task to figure out?

"Sales have been lower since the start of the year, Bill. People have less money, and consumer sales are lower, but I just cant find the correlation!"

"Goddamn it Chuck, keep looking! The reasons got to be in there somewhere! Check recent weather patterns! Rule out Arab Spring fallout! Fund a billion tax dollar research program to study the effects of horse meat on consumer spending! We must keep searching!"

Maybe the February numbers are a disaster because the stores are a disaster - dirty and junky. Or maybe people don't support their unfair labor practices. Or maybe people are weary of crappy Chinese products. Or maybe people don't support how Wal Mart drives globalization and unfair trade practices. Or maybe people don't support their gun and ammo sales.

Maybe, just maybe, it has little to do with Obama and everything to do with Wal Mart.

reply to post by CaticusMaximus


Heh yeah, but I think the MSM will at all times be very very careful and lets be honest, basicaly under orders to never mention, especialy at prime time viewing hours

"well folks, the problem is nobody has any money because the banks and government colluded to steal most of the real wealth there was left in society, please take the time now to convert your soon to be worthless currency and move to an emerging economy like Paraguay for a better life".

That sort of sentiment leads to riots.

Maybe, just maybe, it has little to do with Obama and everything to do with Walk MaRt.

No its pretty much to do with the fact people dont have any money.

Originally posted by kosmicjack
Maybe, just maybe, it has little to do with Obama and everything to do with Wal Mart

Maybe, just maybe, it has little to do with Walmart and everything to do with Obama.
None of those things you mentioned happened overnight.
This all happened in the past six weeks.
If it were because of goods from China or crappy goods in general, etc ..
then sales would have been through the floor before the past few weeks.

Something changed. And it's not Walmart.
They are the same low-end store they have always been.

reply to post by FlyersFan



I am really impressed with this health care thing. It is nice to see the USA doing something positive for her people for a change

reply to post by FlyersFan


And you don't think it's possible that Wal Mart may need a convenient scape goat?

I don't know anyone IRL who shops at Wal Mart unless it's a last resort.

reply to post by purplemer


Forcing a huge percent of the population into bankruptcy is a good thing? Nice.

Originally posted by jam321
I propose two other options Walmart ought to look at. One is the rising food prices.

Now this is real. Prices have risen sharply since Christmas, it's possible that Wal Mart was already so low, they can't absorb it and still make a profit, it has to come from somewhere.

Wal Mart: "Let's blame Obama, everyone's doing it!"