Walmart Inflation is Easing
Inflation in toys, clothing and sports goods is less serious.Here on this post we get some convincing statements from CEO.
Finally, shoppers are getting some good news about prices: Inflation is falling on discretionary products just in time for the holidays, Walmart chief Doug McMillon said:
“In toys, sporting goods, apparel, categories like that, prices have come down more aggressively,” McMillon said in an interview on CNBC. “We’re still inflated but we’re not inflated nearly as much as we are in the other categories.”
Although prices on these goods are still rising, they’re not rising by nearly as much as other categories, because retailers misjudged consumer demand and have excess production piled up. To clear out the stock and tempt the shoppers to buy, stores have ramped up promotions.
- Walmart (WMT) is the largest retailer in the United States and has a gauge into consumer habits and a wide array of products.
- Customers were adjusting their grocery habits by switching from name brands to Walmart’s cheaper in-store brands, he said.
- McMillon said budget-conscious customers were most pressured by inflation, but other shoppers “have money to spend.”