“In case you haven’t seen a sales report these days, February (month-to-date) sales are a total disaster,” wrote Murray in a February 12 email to executives. “The worst start to a month I have seen in my (about) 7 years with the company.”
The recent hike in payroll taxes is dragging down sales for discount retailers like Wal-Mart. With less disposable cash in their wallets, lower-income shoppers have less to spend.
The bad news comes on the heels of a lackluster January for the major retailer.
“Have you ever had one of those weeks where your best-prepared plans weren’t good enough to accomplish everything you set out to do?” wrote Walmart Vice President for U.S. Replenishment Cameron Geiger in a February 1 email to Walmart executives. “Well, we just had one of those weeks here at Walmart U.S. Where are all the customers? And where’s their money?”
If we – the “middle class” – have 5% less money between payroll taxes and Obamacare, then that’s 5% less to spend at Walmart. Or Patagonia, or MPR’s pledge drive, or what have you.
Most of us know this.
Democrats in DC and Saint Paul, it seems, do not.