(Image source: businessweek.com) Reduction of government benefits (Food Stamps)Higher health care costsHeavy promotions and discounts (negative impact on margins)Weak consumer spendingIt seems like whenever Walmart has disappointing earnings, a reduction of food stamp benefits is always blamed. Food Stamp benefits are highly correlated with Walmart earnings. Most Walmart stores are in the southern region. The southern region receives a huge proportion of food stamp benefits.