Bad weather and federal cuts to the food stamp program are the reasons cited by Wal-Mart for its lowered fourth-quarter profit expectations. According to Wal-Mart’s CFO Charles M. Holley Jr., although the holiday season went really well for the big box retailer, SNAP reductions were “greater than we expected,” the New York Times reports.
Last year, the Supplemental Nutrition Assistance Program received billion dollar cuts, and will also receive more cuts in the coming weeks. The cuts affected more than 47 million people, and yielded them unable to afford Wal-Mart’s prices.
Then there was the weather. Winter storms have not only closed Wal-Marts but also affected operating statuses at Sam’s Club. Sam’s Club will also feel the brunt of the company’s financial issues when layoffs hit 2, 3000 employees and one store closure.
Woe is Wal-Mart. Sarcasm alert.