Food stamp cuts hurt WallMarts bottom line

[jclalor 12]

You can't make this stuff up.



http://money.cnn.com/2014/01/31/news/companies/walmart-food-stamps/

[wolfriverjoe 1,353]

Not quite sure what your point is.

WalMart aims a LOT of their marketing at lower income folks. They tout low prices, which are often the result of somewhat shady marketing practices (same sized packages containing less product for one example) to attract people with limited budgets.

When those people lose some of their income, so does WalMart.

"There are NO situations which do not call for a French Maid outfit." Lucky McSwervy

"~ya don't GET old by being weak & stupid!" - Airtwardo

[weekender 0]

Walmart is being honest. Low income people are hurt when their subsidies are cut. If you get less in food stamps, you spend more of your limited income on food. this leaves less cash to spend on other things at Walmart. pretty simple economics.

"The point is, I'm weird, but I never felt weird."
John Frusciante

[Andy9o8 0]

Agreed - though it could be said that Walmart has hedged it bets somewhat by having recently branched-off into having supermarket departments in their stores. Still, you have to get the customers to come in to the store in the first place; but that's more a marketing issue.

[weekender 0]

Andy9o8

Agreed - though it could be said that Walmart has hedged it bets somewhat by having recently branched-off into having supermarket departments in their stores. Still, you have to get the customers to come in to the store in the first place; but that's more a marketing issue.

a more accurate alternative is the AMEX/Walmart Bluebird product. this is a direct reaction to them not being able to get full banking status.

"The point is, I'm weird, but I never felt weird."
John Frusciante

[billvon 2,435]

I'd expect it to also hurt their worker retention. They train their workers how to apply for food stamps and other government programs, since they pay so little that many of their employees are below the poverty line. By cutting food stamps, Wal-Mart might be forced to pay their workers more. (Or perhaps they will simply attract less skilled workers, but that's sort of hard to imagine.)

[kallend 1,651]

billvon

I'd expect it to also hurt their worker retention. They train their workers how to apply for food stamps and other government programs, since they pay so little that many of their employees are below the poverty line. By cutting food stamps, Wal-Mart might be forced to pay their workers more. (Or perhaps they will simply attract less skilled workers, but that's sort of hard to imagine.)

Surely those food stamp recipients are buying 82inch TVs and 7 series BMWs with their taxpayer provided largesse. I'm sure the right wing sites are telling us that.

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