By Jaewon Kang
Walmart Inc. said shoppers are still spending about the same as they did a year or two ago, with a focus on food and essentials over discretionary purchases.
“It’s been very consistent,” Chief Financial Officer John David Rainey told reporters in a question-and-answer session at the company’s annual shareholders’ week in Bentonville, Arkansas. “Wallets are stretched. And so they’re still stretched, but the overall level of behavior has not been that different than what we’ve seen in the last year.”
A large grocery business and reputation for low prices have helped the world’s largest retailer boost sales and attract higher-income shoppers. Newer businesses such as third-party marketplace sales and advertising are also helping to fuel profitability growth. The stock is up about 8% this year, outpacing a 2% gain in the S&P 500.
Walmart is faring better than many of its rivals. Target Corp. cut its forecast two weeks ago after backlash from the company’s decision to halt diversity initiatives led to a sharp pullback in sales, coupled with the hit from President Donald Trump’s trade war.
Declining consumer sentiment, weak discretionary demand and tariff uncertainties have created turbulence across the retail industry and beyond. Fast-changing levies have made it more difficult for companies to forecast demand and plan longer term.
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