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

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

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.

By Husna Haq, Correspondent / February 22, 2013

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, 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.

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

One thought on “Why is Wal-Mart worried? Payroll tax could cut consumer spending

  1. Maybe Walmart should look and see what the competition is doing better.

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