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Wal-Mart Expects Lower Sales Growth Due To Gasoline Prices

Wal-Mart, the world largest retailer, expects to see very small revenue increase at the end of this month. The retail giant estimates that sales from same-store figures rose 2.3 percent, the low end of forecasts, alone. Wal-Mart attributes the low figure to the fact that gasoline prices rose during the month, and customers are affected by the increasing prices. Wal-Mart projected a revenue growth of 2 to 4 percent, but now realizes that their projections were premature.

Chief Executive Officer over at Wal-Mart, Lee Scott, said "We continue to see higher gasoline and utility prices affecting our customers." Customers are forced to spend more money on gasoline and therefore spent less on other products. Gasoline is crucial and there`s no way people can cut down on their gasoline use ? so shopping takes the blow instead.

Wal-Mart is not the only business company affect by the soaring oil prices. Wall Street is watching closely for signs of a spending slowdown due to gasoline prices rising. A recent survey shows that three out of four Americans plans to cut back spending because of high gasoline prices. Final word from Mal-Wart will come on Thursday when they, and other major retailers, publish final May sales results.