Walmart anticipates slow sales as shoppers start scaling back - WTOC-TV: Savannah, Beaufort, SC, News, Weather & Sports

Walmart anticipates slow sales as shoppers start scaling back

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Walmart announced Thursday a nearly nine percent jump in profits last quarter, but the world's largest retailer says that won't be the case moving forward.

The store, along with several other big companies, expects consumers to spend less cash these next few months because of the payroll tax and late tax refunds.

Wal-Mart accounts for 10 percent of all the nation's non-automotive retail spending. This means the amount of money people spend at Wal-Mart can be a strong indicator of how much they're spending overall. Many middle-class Americans are feeling the pinch thanks to a payroll tax implemented at the beginning of the year. Also, since the IRS decided to push back the date they start accepting tax returns, many people are holding off on those big ticket purchases.

"You just have to wait a longer period of time to get what you really need, hoping it will come in time," Frank Gupton said.

"I'm trying to buy a house right now so it's a lot of things I'm having to cut back on to save up and buy that house," Sean McCarthy said.

Copyright 2013 WTOC. All rights reserved. The Associated Press contributed to this report.

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