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Walmart (WMT) is cutting prices on thousands of items as inflation eases, a sign that consumers are still hunting for bargains.
“As it relates to value, we’re lowering prices,” Doug McMillion, Walmart’s WMT+0.77% CEO, said during the company’s second quarter earnings call. The retailer is slashing prices on 7,200 items across various categories.
McMillion said the company made the decision following its quarterly results, which highlighted that consumers across all income cohorts are still turning to the retailer for everyday essentials. Key growth areas included food and general merchandise, as well as its U.S. health and wellness division, which saw significant sales from GLP-1 drugs. “So far, we aren’t experiencing a weaker consumer overall,” McMillon said.
Walmart’s WMT+0.77% price cuts come as consumers, burdened by high inflation, are increasingly focused on finding value. In late May, major retailers including Target, Amazon, and Walmart announced plans to reduce prices to attract cost-conscious shoppers. At the time, Walmart said it would “roll back” prices on 7,000 items.
As the largest U.S. retailer, Walmart may be further solidifying its dominance in the market through these strategic discounts.
On Thursday, the retail giant reported strong second-quarter earnings that surpassed Wall Street’s expectations. Results were fueled by higher-income households, as well as its advertising and e-commerce units.
The company said gains in market share grew across income levels, but were “primarily driven by upper-income households.”
In March, Walmart said it would remodel about 650 of its stores in a bid to attract more affluent shoppers. The upgrades included improved lighting, an increase in mannequin headcount, reduced displays, and a focus on high-end products. Additionally, the launch of its chef-inspired Bettergoods private label and an expanded selection of back-to-school essentials have also contributed to its appeal among consumers.