Walmart Sales Dip as Low-Income Americans Close Wallets

Shares of the world’s largest retailer dropped on news of a third straight quarterly drop in sales

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Walmart posted its third straight quarterly decline in United States sales on Thursday, pushing its stock price down 1.3 percent in pre-market trading and signaling a reluctance to spend among the company’s low-income customer base.

U.S. sales at the world’s largest retailer, including both in-store and online, declined 0.3 percent in the third quarter ending Oct. 31.

“That low-end customer is just not willing to step out and buy those discretionary items,” an analyst told Reuters. With an end to the payroll tax holiday and stagnating wages, low-income customers have been reluctant to open their wallets.