Walmart (WMT) admitted that the company’s finances would be in trouble if it wasn’t for customers that use food stamps.
The retailer’s annual report cited the Supplemental Nutrition Assistance Program and other public assistance plans as part of its financial backbone. This statement makes sense when you consider that many of the company’s customers are low-income consumers.
Walmart’s statement also included the usual warnings of natural disaster, civil unrest and changes in income and corporate tax. However, this was the first time the retailer acknowledged the importance of food stamps and public assistance plans to its financial health.
The company suffered a decline in late winter sales earlier this year which it attributed to the cold weather and food stamps cuts.
WMT stock is down about 0.05% Tuesday.
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