Experts predict that this year could be somewhat tough for Wal-Mart in terms of it generating sales growth.

This is attributed to the prediction that as many as 1 million low-income shoppers are about become more tightfisted with their spending as the new qualification requirements rolls into effect for the Supplemental Nutrition Assistance Program in the US. Predictions are that this would take a nibble out of revenue at the world’s largest retailer. This means that from April 1, those consumers who no longer qualify for SNAP lost their benefits in some states.

The time limit will be in effect in more than 40 states, including 22 of which have not had such a rule since before the recession, according to the nonpartisan Center on Budget and Policy Priorities. As different states and counties roll out their take on the new requirements, between 500,000 and 1 million people would be impacted by the change according to the center.

Craig Johnson, president of Customer Growth Partners said that it would be difficult to gauge exactly how much of an impact the change will have on retailers as the program would be rolled out in a gradual manner. However some 0.4 to 0.6 percent on Wal-Mart’s comparable sales would be weighed down by it, estimates Johnson.

“It’s not insignificant. People are very stretched financially … this is yet another pressure factor,” Johnson said.

But there are some other issues that are weighing on low-income consumers in the US apart from changes to food stamp qualifications. With the biggest drop occurring among the lowest two income quintiles, the median income for the overall population has been flat or down 2 percent over the past 10 years even as unemployment is down, Johnson said.

According to AAA, the low gas prices which are currently at an average $2.06 a gallon across the U.S. have also added to the issue. It also represents an increase of roughly a quarter per gallon over the past month even as it is still some 34 cents less than one year ago.

“This is broader than just SNAP,” Johnson said.

But according to Johnson, compared to a separate benefit increase ended in late 2013, the latest change to SNAP qualifications will have a much smaller impact. That closure of benefits had reduced the benefits of “nearly every SNAP recipient” — roughly 47 million people — who on average saw their benefit cut by 7 percent, according to the Center on Budget and Policy Priorities. These changes has reduced its grocery sales by 0.9 percent in the first quarter of 2014, Wal-Mart had said.

A 1.4 percent quarterly decline in revenue was reported by Wal-Mart during its latest earnings, while the US retailer also lowered its forecast for sales during the current fiscal year to a reading of flat. It would have maintained its forecast for annual sales growth in the 3 to 4 percent range but for the recent closure f stores and a stronger U.S. dollar, the company said.

adapted from cnbc.com