Walmart Could Take Major Hit When SNAP Benefits Expire—And It's Not The Only Company Hit By Shutdown

Forbes

Spencer Hakimian, host of "What's Moving Your Money," discusses the serious revenue hit Walmart could hit if SNAP benefits expire.   Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1  Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:  https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

00:00Walmart will very soon start feeling the pinch of this government shutdown.

00:05Walmart earns 5% of its total revenue from SNAP benefits spending at its stores.

00:13SNAP program is $100 billion, $25 billion of which is spent at Walmart grocery stores and chains.

00:21So without any further ado, let's get into the economic effect of this government shutdown

00:28as it does not appear to be ending any time soon.

00:33And with that, let's get right into it.

00:40Hey everyone, I'm Spencer Akeemian and welcome back to a very brief episode.

00:45On today's episode, we're going to begin to cover some of the public companies

00:50that are going to be affected by this prolonged government shutdown.

00:54And I'm not here to waste anyone's time.

00:56Everyone knows the obvious.

00:58Everyone knows the defense contractors.

01:00Everyone knows the government service agencies.

01:03But there's a lot of more companies that you may not think benefit tremendously

01:08from the government and from government programs and will get hurt the longer this lasts.

01:13The picture definition is Walmart, the largest retailer in America,

01:18the largest employer in America.

01:20Five whole percent of Walmart's revenue comes from SNAP benefits spending,

01:25food stamp assistance spending.

01:28Five percent of all of Walmart's revenue is that.

01:32And guys, if you don't know about the retail and the grocery business in particular,

01:36it is uber competitive.

01:38It is razor thin profit margins.

01:40It is cutthroat.

01:42A five percent loss in revenue is literally the difference between Walmart being in the red

01:47or being in the black for an entire year.

01:50This is not small numbers.

01:52This is literally the difference.

01:54How long this government shutdown lasts is literally the difference between whether one

02:00of the biggest companies in America can turn a profit in the United States in 2025 or not.

02:06Don't make this smaller than it is.

02:07It's huge and it's only going to get bigger as this continues.

02:11Another area where Walmart is enormously impacted by SNAP benefits spending is that many of the

02:20employees at Walmart, many of them may be members of SNAP benefits.

02:26They may have a family member that received some.

02:29So you can only imagine the loss in productivity if Walmart's employees begin to lose some of the

02:36food that they were getting or they begin to lose some of the discretionary income that

02:41they were getting or, you know, now they have to think twice as long about how and when their

02:47next meal is coming from.

02:48As this government shutdown continues, we're going to start a series here where we're going

02:52to highlight some companies that are significantly impacted by this shutdown.

02:56Tomorrow, I'm going to talk about Delta, the airliner.

03:00Believe it or not, they're also going to be impacted.

03:02So stay tuned and thank you guys as always for watching.

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