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Wal-Mart forecast disappoints as grocery business struggles

Feb 21, 2014    

(Reuters) - The struggles of the low-income U.S. consumer are playing out in Wal-Mart Stores Inc's (WMT.N) grocery aisles.The world's largest retailer, which gets more than half its sales from groceries, on Thursday gave a disappointing full-year forecast. It blamed sharp cuts in food stamp benefits and higher payroll taxes that are will hit disposable income for its core customers. Wal-Mart shares fell 2.2 percent in morning trading.To combat sluggish sales, broaden its customer base and fend off aggressive rivals, Wal-Mart said it was doubling the number of smaller new stores it originally p...

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