High Gas Prices Hurt BJ’s and Wal-Mart
Natick, Mass. and Bentonville, Ark., The rising price of gasoline is not only affecting consumers. Retailers are also feeling the effects of the increases. BJ’s Wholesale Club reduced its earnings forecast for the year by about 3? per share because of lack of gas profits. The company said although prices and sales of gas rose, the profits in that segment of sales decreased.
Wal-Mart has also felt the increase in gas prices. The company said its sales growth was slowed for the second quarter to the lowest profit increase it has seen in four years because of rising fuel prices. Thomas M. Schoewe, Wal-Mart’s executive VP and CFO, said he believes high gas prices will “continue to impact a large portion of our customer base and put pressure on operating results.”