Walmart lowered the cost of 7,200 products this summer through the company’s “rollbacks,” but one section is being a bit more “stubborn” when it comes to dropping prices.
Rollback is a term the retail giant uses to describe a temporary price reduction on a product that lasts for more than 90 days, Walmart said in an email to USA TODAY. About 35% of Walmart’s rollbacks were in food.
Despite the rollbacks, Walmart “still has slight inflation” in the foods category at the end of the retail giant’s second quarter (the three-month period of May-July 2024), said Walmart CEO Douglas McMillon. Walmart’s 2025 fiscal year ends Jan. 31, 2025.
Value meal wars: More fast food spots, restaurants offer discounted menu items
“In dry grocery, processed food consumables are where inflation has been more stubborn,” said McMillon during the company’s quarterly earnings call on Aug. 15.
Cereals are just one example of dry, processed food.
While he hopes to see brands try to boost sales by slightly decreasing prices and investing in the price of their products, some are still talking about increasing prices.
“I don’t forecast that we’re going to see a lot of deflation in our number looking ahead,” said McMillon. “It probably levels out about somewhere near where we are, with the mix being reflected as I just described.”
Attracting younger customers
Both Walmart and Sam’s Club offered slightly lower prices overall in the quarter, McMillon said.
“Customers from all income levels are looking for value, and we have it,” he said.
Sam’s Club saw increased memberships across income brackets and younger generations, with “Gen Z and millennials constituting about half of new members in Q2,” said John David Rainey, Walmart’s chief financial officer and executive vice president.
He adds that this “is a positive signal about the future growth of the business.”
Julia is a trending reporter for USA TODAY. She has covered various topics, from local businesses and government in her hometown, Miami, to tech and pop culture. You can connect with her on LinkedIn or follow her on X, formerly Twitter, Instagram and TikTok: @juliamariegz
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Publish date : 2024-08-27 06:18:00
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