retail news in context, analysis with attitude

Business Insider reports that Walmart CFO Brett Biggs told reporters yesterday that the retailer is concerned about one potential part of any tax plan that could be passed by the US Congress and signed into law by President Donald Trump.

"The border adjustment tax, for us, is a concern," he said. "Clearly anything that would potentially raise prices for our customers in the US is a concern for us."

According to the story, "Walmart had previously joined a coalition of retailers against a border adjustment tax but this is the first time executives have spoken out against the possibility. Biggs said Walmart was generally in favor of tax reform but not when it involved taxing imports.

"An estimated 97% of all clothing and shoes sold in the US are imported, which is why such a change in US tax policy would most likely have a dramatic effect on Walmart, the world's largest clothing retailer. If such a tax were introduced, Walmart would most likely need to either eat those costs and take a hit to profitability or pass the costs on to customers."
KC's View: