Citing its current momentum, Walmart is eyeing a successful holiday season, reported The New York Times. Walmart “has told its workers that it plans to ‘win’ the holiday season. Ahead of the peak shopping period, the nation’s largest retailer appears well positioned, citing ‘broad-based strength’ across its product range,” reported The NYT.
Walmart said Tuesday that U.S. sales increased 5% in the third quarter to $114.9 billion, surpassing analysts’ estimates. The number of visits and the amount spent per visit both rose.
The NYT described Walmart as “a bellwether of U.S. consumer trends,” with U.S. sales for the holiday shopping season expected to increase moderately by “2.5% to 3.5%, according to the National Retail Federation, a pace that resembles that of 2019.”
Walmart is “drawing more customers for grocery and general merchandise, signaling that shoppers of all income levels remain price and deals-driven, especially leading into the holidays. Even as inflation eases, prices remain higher than pre-pandemic levels and shoppers are looking to trade-down on household essentials, apparel and holiday décor,” wrote The Washington Post.
A growing demographic of shoppers for Walmart is households earning more than $100,000, which “made up 75% of Walmart’s market share gains in the third quarter, chief executive Doug McMillon said Tuesday during the company’s third-quarter earnings call,” reported The Washington Post.
The retailer has focused on bringing in wealthier consumers, per the Washington Post. Walmart announced its Bettergoods private label earlier this year, which featured organic and “healthier” products.
Walmart’s e-commerce is also seeing growth. The retailer’s global e-commerce sales “rose 27% from the same period last year and now account for 18% of global revenue,” reported The Wall Street Journal.
Earlier this year, NACS Daily reported on how Walmart Chief Financial Officer John David Rainey said that some of the year’s earlier sales growth could be attributed to customers who decided to save money by buying groceries to make meals at home instead of going to a QSR as fast-food prices increase.