Walmart is really on a roll lately! The company is seeing a boost in business, largely thanks to customers who earn over $100,000 a year.
According to their latest report, sales at US stores that have been open for at least a year jumped by 5.3% last quarter compared to the same time last year, and profits shot up by 8.2%.
They’ve even raised their financial forecast, hinting that they expect a bustling holiday shopping season ahead.
Interestingly, Walmart’s growth is being driven mainly by wealthier households—those making over $100k accounted for 75% of their gains last quarter.
Shares of Walmart soared more than 3% on Tuesday morning after the earnings announcement, reaching new heights consistently over the past couple of months.
While low and middle-income shoppers have always been Walmart’s backbone, they’re still flocking there for bargains. But in recent years, Walmart has also been targeting higher-income customers—historically Amazon’s main crowd.
As the world’s largest retailer, Walmart has attracted these shoppers by investing heavily in its grocery business and leveraging its scale to keep prices down. They’ve also improved their selection of clothing, electronics, home goods, and more.
Plus, they’ve ramped up their online presence to compete with Amazon effectively.
Thousands of locations now offer buy online and pick up in-store options as well as same-day grocery delivery memberships.
Online sales surged by 22% in the US last quarter! CEO Doug McMillon mentioned during an earnings call that expanding their online offerings helps them attract more customers across different income levels—especially those with extra cash who want convenience through pickup and delivery services.
Walmart’s success shows that consumers from all walks of life are still hunting for good deals and value.
Even though inflation seems to be easing up a bit now, many Americans are feeling the pinch from rising prices over the past few years. While Walmart thrives, many other retailers are having a tough time; we’re actually set to see more store closures this coming year than we have since 2020 when COVID hit hard.
Chains like Family Dollar and Walgreens are shutting down thousands of locations as they try to cope with changing consumer habits after the shopping surge we saw during 2021-2022 when people were buying everything from couches to electronics like crazy.
Prices have climbed too high for many folks’ budgets lately; plus interest rates have spiked making loans for big purchases like homes or cars pricier than ever before.