With stores struggling to win back customers during an era of high prices and shrinkflation… one retailer is thriving while the rest struggle. Walmart earnings reveal that all of the investments the company has been developing…
Have been paying off in huge ways.
What’s Going Right For Walmart’s Earnings
More and more shoppers are seeking solutions to combat the high prices they face everywhere…
And a lot of them have settled on Walmart.
When reporting their earnings in the first quarter, Walmart saw store sales rise 3.8% with its e-commerce business rising 22%.
But it’s not just lower-income shoppers avoiding the inflation squeeze…
Upper-income shoppers are also waltzing into the store looking for a better deal than in other stores.
OVER THE PAST 3 YEARS, HOUSEHOLDS EARNING OVER $100,000 HAVE PROVIDED THE BIGGEST GAINS IN WALMART’S MARKET SHARE
The New York Times
What’s responsible for the change?
A greater shift in product offerings and the company’s focus on diversification.
Walmart’s earnings saw an increase once more affluent customers began shopping in stores. The retailer’s CFO, John David Rainey, credits this new influx with the introduction of new items that appeal to the high-income demographic:
“THE MORE THAT WE MOVE INTO THAT SPACE AND OFFER A BROAD ASSORTMENT LIKE THAT, I THINK THE MORE WE’RE GOING TO RETAIN THIS COHORT.”
Beyond catering to just wealthier customers, Walmart is also making sure they don’t alienate other customers who are trying to look for a good deal.
To address its original base, the company is launching a new label to compete with retailers like Trader Joe’s and Whole Foods.
Bettergoods, Walmart’s latest expansion into private labeling, will add over 300 items to their shelves with most of them costing under $5. The new additions focus on adventurous flavors as well as health call-outs.
Some of the new additions to the line include:
- Blueberry Swirl Oatmilk Icecream
- Raspberry, cardamom, and rose fruit jam
- Chicken Curry Empanadas
As for the rest of the company during Walmart’s earning reports…
They might be faring a bit differently.
What Else Is The Retailer Planning?
Beyond the expansion in the retailers catalog…
Walmart’s earnings also revealed a lot about the broader company’s plans to restructure and reallocate its focus.
Earlier this year, the company announced that they would be closing all health center locations after the venture became too costly to maintain.
Outside of their other ventures…
The company also announced that they would be laying off hundreds of employees in corporate positions as well as relocate others.
Even with these moves…
WHEN THE EARNINGS REPORT WAS RELEASED, WALMART’S STOCK PRICE JUMPED TO RECORD LEVELS.
It seems that in the face of all the new changes the retailer is making…
Their planning and calculations are paying off in Walmart’s earnings.
Be Great,
GCTV Staff
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