- Walmart increases guidance after strong earnings
- While the dominant retailer increases margins, others in the sector are struggling
The US economy recovered after Covid-19 lockdowns faster than any other developed nation, helped by the stimulus payments made to consumers. The resultant spending enabled most companies to increase prices without losing volume, but this period is coming to an end.
One of the main beneficiaries of this latest shift has been Walmart (US:WMT), which said earlier this month its “value convenience proposition” was helping it gain share with the upper-income households. In other words, wealthier consumers were visiting Walmart more often. “As the value leader in retail, we believe Walmart is well-positioned in the present environment,” said Jefferies analyst Corey Tarlowe. “Walmart US will continue to gain share, as the consumer wallet is tightened."