Walmart is attracting higher-income families in the fight against inflation
SIMONE DEL ROSARIO: IF YOU WANT A WINDOW INTO THE HEALTH AND HABITS OF THE AMERICAN CONSUMER, LOOK NO FURTHER THAN WALMART.
ON TUESDAY THE RETAIL GIANT SURPRISED BY BEATING EXPECTATIONS FOR EARNINGS AND REVENUE, QUELLING FEARS OF INFLATIONARY PRESSURES.
THE COMPANY ORIGINALLY CUT PROFIT EXPECTATIONS LAST MONTH AFTER SEEING A SIGNIFICANT SHIFT IN SPENDING HABITS, WHERE AMERICANS MOVED AWAY FROM DISCRETIONARY PURCHASES LIKE ELECTRONICS AND APPAREL – FOCUSING INSTEAD ON NECESSITIES LIKE FOOD.
BUT SOME OF WALMART’S QUARTER TWO GAINS CAME FROM HIGHER PRICES ON ITEMS LIKE FOOD. GROCERY PRICES NATIONWIDE, UP 13.1% ON THE YEAR.
WALMART CEO DOUG MCMILLON: Inflation is having an impact particularly for those that don’t have as much money so we see them behaving in different ways, but we’re also attracting a lot of new customers to come to our stores, to our app, to our website. higher income families are shopping at Walmart because they’re so price sensitive right now.
SIMONE DEL ROSARIO: THAT’S RIGHT, PART OF WALMART’S RECENT SUCCESS IS DUE TO MORE MIDDLE AND HIGH INCOME FAMILIES – WALKING DOWN WALMART AISLES TO SAVE MONEY.
ITS CEO SAYING MOST OF WALMART’S GAINS IN THE FOOD AISLE, CAME FROM FAMILIES MAKING OVER $100,000 A YEAR.
I’M SIMONE DEL ROSARIO AND FROM NEW YORK IT’S JB.