Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Business

What recession? Walmart says consumers are still spending

by August 15, 2024
August 15, 2024
What recession? Walmart says consumers are still spending

Walmart remains cautious about the financial health of its shoppers, but executives at the retail giant do not see a full-blown downturn on the horizon.

In an interview with CNBC, Walmart Chief Financial Officer John David Rainey said that the company decided not to raise expectations for the second half of the year given uncertainties like the 2024 election and unrest in the Middle East that could up-end consumer sentiment.

But he said shoppers’ activity had been stable in the first six months of the year. The sentiment was echoed later Thursday as the Commerce Department reported that nationwide retail sales unexpectedly popped in July.

“In this environment, it’s responsible or prudent to be a little bit guarded with the outlook, but we’re not projecting a recession,” Rainey said, as the company released its latest quarterly results Thursday.

Whether the U.S. is headed toward a recession, usually defined as two-consecutive quarters of negative growth, has been a hot topic among economists and business leaders for months. A strong economic recovery from the pandemic has seen U.S. gross domestic product (the broadest measure of economic output) continue to rise. But efforts to bring inflation down with higher interest rates have led to some concern that the economy could see a period of contraction.

Part of the focus on whether a recession is on the way has been on U.S. consumers and whether they will continue to spend. Walmart said its latest quarterly revenue grew nearly 5% thanks to increasing visits to both physical stores and Walmart.com. Rainey said consumers continue to hunt for discounts, but that there had not yet been a significant downturn in their activity, with back-to-school season “off to a pretty good start.” 

“We see, among our members and customers, that they remain choiceful, discerning, value-seeking, focusing on things like essentials rather than discretionary items, but importantly, we don’t see any additional fraying of consumer health,” Rainey said.

A key driver of the stability: low inflation. While high prices remain a major focus on the campaign trail — with both presidential candidates talking up how they will take on the higher prices of everyday items — Rainey said price growth was flat for Walmart year over year.

Sales growth was thus driven by selling more units rather than higher prices: Rainey said Walmart has pushed vendors to reduce prices, and that the company saw 7,200 “rollbacks,” or short-term deals on items, in the quarter, including a 35% increase in the number of rollbacks on food.

Rainey said Walmart is likely benefitting as customers look for cheaper alternatives to fast food — a sector that has seen a downturn as consumers have pushed back on price increases. He referred to inflation data, which came out this week and showed grocery price growth has essentially flattened out.

“It stands to reason that customers are shifting to prepare more meals at home versus versus eating out,” he said.

This post appeared first on NBC NEWS
previous post
Harris dodging flip-flop attacks as faceless surrogates flip key positions: ‘Playing politics’
next post
Harris to propose federal ban on ‘corporate price-gouging’ in food and groceries

Related Posts

Dow closes more than 570 points higher to...

June 1, 2024

Store closures hit highest level since pandemic —...

January 24, 2025

Dick’s Sporting Goods stands by full-year guidance —...

May 28, 2025

New Boeing CEO to give clues about company’s...

October 23, 2024

Meta is finally bringing ads to WhatsApp

June 17, 2025

Johnson & Johnson to pay $6.5 billion to...

May 6, 2024

X boss Elon Musk tempers comments about advertisers...

June 24, 2024

Musk says time commitment to DOGE will ‘drop...

April 23, 2025

American recession fears spark selloff in international markets...

August 5, 2024

Walmart fined for shipping realistic toy guns to...

May 28, 2025

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Latest News

    • Home Depot is buying GMS for about $4.3 billion as it chases more home pros

      July 1, 2025
    • Home Depot is buying GMS for about $4.3 billion as retailer chases more home pros

      June 30, 2025
    • Trump signs order lifting sanctions on Syria

      June 30, 2025
    • Trump’s ‘big, beautiful bill’ hits another snag in House as conservative caucus raises red flag

      June 30, 2025
    • ‘Antisemitic’ British band banned from US after viral ‘death to the IDF’ festival chants

      June 30, 2025
    • White House says Mamdani would ‘crush’ New York City if elected mayor

      June 30, 2025

    Categories

    • Business (1,287)
    • Politics (6,216)
    • Stocks (904)
    • World News (460)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved