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Tuesday, August 14, 2007

Wal-Mart: 'Customers Under Economic Pressure'

by Calculated Risk on 8/14/2007 10:19:00 AM

From AP: Wal-Mart Cuts Profit Outlook Amid Weakening Economy, 2Q Sales Up

[Lee Scott, Wal-Mart president and chief executive officer] said its customers are under a lot of economic pressure ...

Wal-Mart has been dogged by the crumbling housing market, a widening credit crunch and higher gasoline and food prices, which have hit lower-income consumers particularly hard.

Tom Schoewe, Wal-Mart's executive vice president and chief financial officer, said that he saw bigger spending swings around the time when people usually get paychecks than he had in the past. That suggests are under more financial pressure than usual.