Walmart lowers prices in general but struggles with inflation in dry groceries

From CNBC: 2024-08-15 13:49:07

Walmart CEO Doug McMillon revealed that grocery prices have fallen at the retailer, but inflation remains high in aisles containing dry groceries and processed foods. The company is pressuring suppliers to reduce prices, with flat overall inflation for the quarter. Walmart’s quarterly results led to a rally in retail stocks like Target and Macy’s.

Walmart reported better-than-expected earnings for the second quarter, with revenue growth driven by selling more units, not raising prices. Prices increased for dairy, eggs, sugar, and meat, but dropped for items like pet food, apples, and strawberries. Walmart’s emphasis on value is credited for its success in navigating consumer scrutiny.

Other retailer giants like McDonald’s and Target are also focusing on value and offering discounts to attract consumers. Walmart has introduced 7,200 rollbacks, including food discounts, and continues to lower prices instead of raising them. The company’s profits are increasing due to growth in higher-margin businesses like advertising, not price hikes on goods.



Read more at CNBC: Walmart says prices are coming down — except in one key area