The retail giant is among the first of the major retailers to report a positive third quarter.
Walmart’s reported Q3 earnings surpassed Wall Street’s predictions, indicating that Americans across all income levels are flocking to the company for its lower-priced groceries and goods.
According to Walmart Chief Financial Officer John David Rainey, about 75% of the retailer’s market share gains in food came from households that make more than $100,000 a year
“When there is a squeeze on consumers, no matter what income level, they will tend to migrate toward value brands,” John Quelch said on NewNation’s “Rush Hour” Tuesday.
Quelch, the dean of the University of Miami Herbert Business School, said other big-box bargain stores are also doing well amid inflation.
But despite sales being on the rise, many Americans anticipate inflation will put a damper on their end-of-year plans and that spending will look a little different this year.
“It’s gonna cut into your budget for Christmas,” one shopper said on NewsNation’s “Rush Hour” Tuesday.
The skepticism is warranted: The inflation rate is currently sitting at 7.7% from last year and, according to a survey from The Vacationer, about 66% of Americans say inflation will impact their Thanksgiving.
“My grandmother does all the cooking, and she was like, it’s a LOT of money,” said another shopper.
According to the survey, a quarter of Americans blame increased travel and food costs.
“If you wanna go just get a couple things that would cost you $20 — you’re spending between $40 and $60 bucks. Its crazy. You can’t feed your kids,” a grocery shopper said.
Walmart, however, has vowed to sell this year’s Thanksgiving meal at last year’s prices — it’s a type of customer loyalty that Quelch said will help get shoppers to its aisles.
“Saying, you know, we’re with you at this time of inflation. And we’re going to give you something at Thanksgiving to thank you for shopping at Walmart by not increasing our prices,” Quelch said.
Walmart also got a big boost from this year’s post-COVID-19 back-to-school shopping season.
Financial reports from Target, Macy’s, and Kohl’s are expected later this week.