Walmart has also lowered prices on 7,200 items to compete with rivals
Walmart reported its US sales grew by 4.2% last quarter, with operating income rising by 8.5%. Its digital sales also surged 22%. The robust sales have led the company to increase its sales and profit forecasts for the year.
The retailer has excelled during the inflation crisis by keeping prices low. Walmart’s groceries, which make up over half of its sales, are priced around 25% lower than those at traditional supermarkets. The company has also lowered prices on 7,200 items to compete with rivals.
While people are cutting back on eating out, they continue to shop at Walmart for groceries and essentials, valuing its lower prices.
Walmart’s stock has increased by 29% this year, outperforming the S&P 500, while competitors like Target have seen smaller gains or losses.
Overall, consumer spending remains strong, but people are being more selective. Home improvement projects have slowed, impacting sales at stores like Home Depot.