- Walmart said inflation was flat in its latest quarter, and revenue growth came from selling more items and drawing more visits to its stores and website, rather than higher prices.
- Yet prices have remained high in some parts of the store, such as dry groceries and processed foods.
- Prices at consumer brands, including Walmart, have faced more scrutiny from both consumers and politicians.
Prices of many groceries and other items have fallen at Walmart, according to CEO Doug McMillon.
Yet the leader of the nation's largest retailer said Thursday that inflation "has been more stubborn" in one particular part of the store: The aisles that carry dry groceries and processed foods. Those include items like carbonated soft drinks.
24/7 New York news stream: Watch NBC 4 free wherever you are
On a call after the discounter posted fiscal second-quarter earnings, he said Walmart has pressured suppliers that stock its shelves to cut prices. But he called on those companies to do more.
"We have less upward pressure, but there are some that are still talking about cost increases, and we're fighting back on that aggressively because we think prices need to come down," he said.
Walmart's overall inflation was flat for the quarter, and revenue growth came from selling more units, not charging higher prices, Chief Financial Officer John David Rainey told CNBC. But price dynamics weren't consistent across products: prices continued to go up for dairy, eggs, sugar and meat, and leveled off or dropped for items including pet food, apples, potatoes, strawberries, sporting goods, and lawn and garden items.
Get Tri-state area news delivered to your inbox. Sign up for NBC New York's News Headlines newsletter.
Walmart's quarterly results sparked a rally in other retail stocks, including Target, Best Buy and Macy's on Thursday. Both the big-box discounter's results and better-than-expected retail sales numbers defied concerns of a consumer slowdown.
Money Report
Snowflake says data breach has not affected core business
Cramer explains why certain retailers saw success in today's consumer environment
Walmart beat on the top and bottom line and raised its forecast to reflect a stronger first half of the year. Rainey told CNBC consumers have continued to be "choiceful, discerning [and] value-seeking," but the company's leaders "don't see any additional fraying of consumer health."
All consumer brands, including Walmart, have been under more scrutiny from shoppers and even politicians as frustration with pricier goods persists — and McMillon's comments about Walmart's suppliers underscore how much pressure grocers have faced. Walmart drew criticism on TikTok for rolling out electronic price labels for store shelves, with some users contending the company will use the technology to hike prices when demand spikes. (Walmart, for its part, has said it has no plans to change its approach to pricing and added the new price tags to save store workers' time.)
Many brands have taken pains to emphasize value or roll out new deals, particularly as consumers get more selective about where they spend their dollars.
McDonald's, for example, launched a $5 value meal in late June and decided to extend the offer in most markets. Target in late May said it would cut prices on about 5,000 frequently shopped items throughout the summer, such as peanut butter, milk and meat.
Walmart is also touting discounts. The retailer said it had 7,200 "rollbacks," its term for short-term deals, across categories in the quarter that ended July 31. That number included a 35% year-over-year increase in the number of rollbacks for food.
While Walmart's profits are growing faster than sales, McMillon said that's because of growth outside of retail in higher-margin businesses like advertising — not higher prices on goods.
"We're not raising prices. We're lowering prices," McMillon said. "We don't want product margins to go up. When we talk about margin improvement in our company, it's business mix."
FAQs
Prices of many groceries and other items have fallen at Walmart , according to CEO Doug McMillon. Yet the leader of the nation's largest retailer said Thursday that inflation “has been more stubborn” in one particular part of the store: The aisles that carry dry groceries and processed foods.
Why are Walmart prices different at different locations? ›
Why is there a price difference between Walmart stores? Prices may vary from store to store because each store is required to manage its own inventory. Therefore, a manager may lower a price to clear out an overstock item, to reward customers with an in-store sale, or to compete with local merchants.
How do I get a price drop alert from Walmart? ›
Sign up with Visualping to monitor any Walmart product page and get notified of price drops and deals you can't miss.
- STEP 1: Enter the URL you want to monitor.
- STEP 2: Enter your email address. Start monitoring (it's free)
Generally speaking, Walmart will price match items found on its own website or in a specific list of online competitors, which can include major retailers like Amazon, Best Buy, and Target. However, there are a few key points parents should keep in mind: Eligibility: Not all items are eligible for price matching.
Does Walmart have the same prices nationwide? ›
They price items at each store according to that store's expenses and what they think customers will pay. My local Walmarts have different prices in the same city.
What is the Walmart pricing scandal? ›
In the lawsuit, an Ohio man says he purchased more than a dozen items from a Walmart store in Illinois in 2022. But the man claims prices for some of the items rung up 10-to-15- percent higher than the shelf price. The lawsuit also alleges there were similar discrepancies in stores in five other states.
Who am I hurting by shopping at Walmart time? ›
“The anticompetitive effects of discriminatory pricing and product supply directed to certain businesses (sometimes but not always small and medium-sized businesses) ripple through the entire supply chain—harming consumers as well as independent producers,” they wrote in the letter.
What is Walmart's secret of every day low prices? ›
Supply chain management and bargaining power: Walmart's strong supply chain management and bargaining power allows it to negotiate lower prices from suppliers, which can help keep prices low for sellers and consumers.
Can I request for refund if price drops at Walmart? ›
Yes, you may be eligible for a price adjustment at Walmart. Check Walmart's price adjustment policy, and if it allows for adjustments within a certain time frame, bring your receipt to the store or contact customer service to request a refund for the price difference.
How do you use the Walmart price scanner? ›
How to check a price
- Get the app. Then, open it while you're in-store.
- Tap “Check a price” You'll find the button on your app's Store Mode home screen.
- Scan to see a price. Use the in-app scanner to read barcodes on items & shelf labels.
- On your Android device, open Chrome .
- At the top right, tap More Settings Google services.
- Turn Track prices on tabs on or off.
Walmart is among the companies that have been accused of predatory pricing. In 1993, a judge ordered the retailer to stop selling drugs and health and beauty products below cost after three stores in Conway, Arkansas, accused the company of undercutting them to drive them out of business.
What is the price adjustment policy? ›
Price adjustments, also called price protection, is a retail practice in which customers can obtain a partial refund of the purchase price of an item if they can show it on sale at a lower price within a fixed time frame.
Is Walmart lowering its prices? ›
Between the lines: Walmart said today that it has cut prices on 7,200 products in a bid to maintain what it calls "competitive price gaps" with its rivals. The company also raised its forecast for its fiscal year, saying it projects sales growth of 3.75% to 4.75%. Consumers, the company said, are "generally stable."
Does Walmart have the same prices in-store as online? ›
For a large quantity of Walmart inventory, you're going to get the same price online that you would find in-store — particularly for big-ticket items like TVs or white goods. But as we've already mentioned, you might find relatively big price differences on a lot of small items. These tend to cost more on Walmart.com.
What pricing strategy does Walmart use? ›
Walmart uses EDLP (Everyday Low Price), Market-oriented, and Fixed-rate pricing strategies, among which the EDLP is their core pricing ideology.
Why do prices fluctuate at Walmart? ›
Dynamic pricing is used by big box chains when prices change abruptly due to weather, traffic or other issues. "It is absolutely not going to be 'one hour it is this price and the next hour it is not,'" Greg Cathey, senior vice president of transformation and innovation at Walmart, said in a statement.
Are Walmart groceries more expensive online? ›
There is no price markup when using this online option. Walmart online groceries carry the same prices as local Walmart stores. If you order an item and its price drops by the time it's packed, don't worry, Walmart's got you covered. You'll be billed the lesser amount, ensuring you get the best deal.
