FOOD STAMPS: Cuts To Hit Wal-Mart Profits

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NEW YORK (CNNMoney) — Wal-Mart Stores warned Friday that cuts to the nation’s food stamps program late last year will hurt its bottom line.

The cut in food stamps went into effect Nov. 1. Food stamps had been increased during the height of the recession, but that expansion expired without Congressional action.

The expiration of the program saved the government $5 billion.

More cuts in food stamp funding could be on the way. A bipartisan deal on a new farm bill reached earlier this week could trim $90 a month in benefits for 850,000 food stamp recipients, saving the government nearly $1 billion a year.

The nation’s largest retailer also said bad weather was affecting its financial performance. Additionally, the company said it will also have to take a charge related to previously-announced plans to cut 2,300 jobs and close some of its Sam’s Club wholesale stores. The warnings mean the company will report a drop in earnings in the quarter that ends Friday.

A year ago, the company reported it was hit by the expiration of a temporary cut in payroll taxes, which it said caused sales to fall in the first quarter.

Shares of Wal-Mart fell in early trading.

2 comments

  • I need some food

    This story is proof the the middle class and the working poor in this country are tapped out. I use to spend over $125.00 a week at Wally world. Now I spend around $50.00. Most of the meat I eat now I’m not really sure is even real or not. Going vegen without really trying.

  • Ishmale Whale

    Us working class have been taped out for the last four years. Now we can’t afford health care, will get fined…It is going to get worse. Food assistance goes down but the cost of food goes up. Us blue collar people are hosed, and the government doesn’t care.

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