The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

What recession? Walmart says consumers are still spending

by admin August 16, 2024
August 16, 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

0
FacebookTwitterGoogle +Pinterest
previous post
United CEO expresses ‘renewed confidence’ in Boeing after meeting with new leader
next post
Harris to propose federal ban on ‘corporate price-gouging’ in food and groceries

Related Posts

Dave & Buster’s plan to allow betting on...

May 7, 2024

Etsy CEO says company is escaping ‘race to...

July 10, 2024

Dick’s Sporting Goods to buy struggling Foot Locker...

May 16, 2025

S&P 500 climbs for best day since early...

July 24, 2024

Gold prices hit another record high after fresh...

April 4, 2024

Private equity firms circle Peloton for potential buyout

May 8, 2024

Home prices soar even higher in February, despite...

May 3, 2024

Comcast announces plan to spin off cable channels,...

November 21, 2024

Disneyland characters and cast members attempt to unionize

April 19, 2024

GM reveals redesigned GMC Terrain as brand’s entry-level...

August 13, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      July 21, 2025
    • What Musk’s fracture with Trump means for GOP’s future: ‘Beating heart of the Republican Party’

      July 21, 2025
    • Trump’s housing chief rips Powell for blowing millions on Fed facelift during housing crisis he perpetuates

      July 21, 2025
    • Trump celebrates 6 months back in office: US ‘totally revived’ after being ‘DEAD’ under Biden

      July 21, 2025
    • Biden admin spent hefty sum of US tax dollars to upgrade embassy swimming pools in Iraq, Russia

      July 21, 2025
    • Trump heads to Scotland, continues ironing out trade deals after notching six months back in office

      July 21, 2025

    Categories

    • Business (1,299)
    • Politics (4,040)
    • Stocks (1,535)
    • Uncategorized (45)
    • World News (1,292)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, 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 © 2025 thetraderharbor.com | All Rights Reserved