Check out the end of the retail lift from government economic stimulus checks.
Wal-Mart Stores, which appeals to bargain-hunting U.S. shoppers, has seen its fortunes rise as the U.S. economy headed south and as the government issued about $100 billion in tax rebate checks to spur consumer spending.
On Thursday, it appeared that the tax rebate party — such as it was — was over.
The world’s largest retailer reported a weaker-than-expected increase in July sales at established stores and issued a cautious forecast for August sales as consumers run out of extra cash from tax rebate checks.
“With the end of the stimulus checks, we know consumers are spending more cautiously, and we continue to see a pronounced paycheck cycle at the end of the month,” said Eduardo Castro-Wright, head of Wal-Mart’s U.S. operations.
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(Photo: REUTERS/Jason Reed)
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