Wal-Mart Worries About Gas Prices

While Wal-Mart Stores blamed higher gas prices for cutting into its sales in the second quarter, CEO Lee Scott said Tuesday he’s concerned that the worst may be yet to come.

“I do feel good about the economy, but I worry about the effect of higher oil prices,” Scott said during the pre-recorded call that was monitored by telephone in New York. “Wal-Mart will continue to face a challenge as the year progresses.”
…Tom Schoewe, Wal-Mart’s chief financial officer, chimed in during the call, adding that Wal-Mart was hit with a double-whammy because of the escalating price of fuel.

On one hand, higher gas prices will continue to cut into the pocketbooks of Wal-Mart’s predominantly low-to-mid-income customers.

…At the same time, Schoewe said more expensive fuel was costing Wal-Mart more on the back end of the business, primarily to use its vast trucking fleet to move freight around the country to its stores.

CNN/Money