Post by : Badri Ariffin

As the holiday season approaches, Walmart is seeing a clear divide in American consumer behavior. The retail giant reported strong quarterly growth, fueled largely by higher-income shoppers, even as low-income households pull back amid rising costs and paused government aid programs.

U.S. comparable sales—covering both stores and digital channels operating for at least a year—rose 4.5% in the three months ending October 31. Analysts note that while overall growth is robust, the story is nuanced: low-income consumers are tightening spending, while wealthier shoppers continue to buy steadily.

A Closer Look at Income Trends

Data from Bank of America shows higher-income households increased spending by 2.7% in October year-over-year, compared to just 0.7% for lower-income groups. Wage growth reflects a similar pattern, with a 3.7% increase for higher earners versus only 1% for lower-income households. This divergence underscores a broader two-speed economy, where discretionary spending is unevenly distributed.

Value, Convenience, and Digital Push

Walmart’s mix of low prices and convenience is resonating across income brackets. From groceries to home essentials, the retailer’s digital and in-store offerings are attracting shoppers hunting for deals. E-commerce sales surged 27% in the quarter, helped by Walmart’s rapid delivery services, now available to 95% of U.S. households.

Despite overall inflation, Walmart kept price growth moderate, with store prices rising just 1.3% over the quarter, well below the 3% national inflation rate recorded in September. Products most affected by price hikes include electronics and patio furniture, as the company balances absorbing costs and passing some increases to customers.

Strong Revenue and Stock Momentum

Walmart’s total revenue jumped 5.8% to $179.5 billion, while net income soared 29% to $6.1 billion. The company also plans to move its stock listing to Nasdaq next month, signaling its growing focus on digital innovation.

As Americans seek value and efficiency this holiday season, Walmart is capturing attention on both fronts, leveraging its scale, fast delivery, and competitive pricing to appeal to a wide range of shoppers.

#Business News #Economic