Walmart, the largest U.S. retailer, is benefiting from shoppers looking for affordability amid economic uncertainty, a sign of consumer health ahead of the crucial holiday season.
The company on Thursday reported an 4.5 percent increase in sales at stores open for a year or more, a slowdown from last year’s growth at 5.3 percent. Shoppers took fewer trips to the stores, but spent more when they did.
Walmart once again raised its forecast for the year, a signal of confidence that it can keep customers coming to its stores, websites and Sam’s Clubs, Walmart’s club membership business. It now expects sales to increase 4.8 to 5.1 percent for the fiscal year.
This financial results are closely watched as it helps set the tone for the critical holiday shopping period, which typically begins next week with Black Friday, although some retail analysts count the entire month of November.
Consumers’ purchases of groceries, general merchandise and health and wellness products fueled Walmart’s growth. Its e-commerce business increased 28 percent as the retailer focused on filling online orders through its massive store base. Growth in its advertising and marketplace business also lifted its online sales and helped improved its operating income.
“The team delivered another strong quarter across the business,” Doug McMillon, Walmart’s chief executive, said in a statement. Last week, the company said Mr. McMillon would retire at the end of January. John Furner, head of Walmart’s U.S. business, will replace him.
Affordability has been on the minds of many Americans as they wrestle with higher prices from inflation and tariffs. President Trump has repeatedly used Walmart as an example that prices are going down by pointing to a report from the retailer that showed the cost of a Thanksgiving meal would be 25 percent less than under President Joseph R. Biden Jr. The caveat is that compared to last year, there are fewer items in this year’s Walmart bundle, analyses have shown.
Walmart’s business did show weakness this past quarter. At Sam’s Club, comparable sales increased 3.8 percent, almost half of the growth seen last year. Transactions and average ticket price were down.
Jordyn Holman is a Times business reporter covering management and writing the Corner Office column.
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