Walmart sales get boost from higher income shoppers as inflation rages
By Associated Press
August 16, 2022 11:57am
Higher income shoppers turned to Walmart looking to cut costs on groceries amid surging inflation, helping to boost sales at the nation’s largest retailer during the second quarter.
Those rising prices also led customers to cut back on non-necessary items, however, and that weighed on profits as Walmart was forced to cut prices and clear inventory.
“We’re pleased to see more customers choosing Walmart during this inflationary period,” said CEO Doug McMillon. “The actions we’ve taken to improve inventory levels in the US, along with a heavier mix of sales in grocery put pressure on profit margin.”
Walmart still beat Wall Street expectations and sales at stores open at least a year rose 6.5% as more Americans, looking for savings, shopped for groceries at Walmart.
It was more than twice the increase in same-stores sales that the company booked in the first quarter.
And Walmart said it’s making progress in getting rid of excess inventory, though it’s still an issue. The company on Tuesday said the decline in profit that it forecast just a month ago will be smaller than it thought.
Shares of Walmart jumped more than 5% to $139.82 midday trading..
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https://nypost.com/2022/08/16/walmart-sales-get-boost-from-higher-income-shoppers/
