Retailer cites rising gasoline prices attracting budget-conscious shoppers while higher-income consumers boost premium purchases.
Walmart reported a 4.1% increase in U.S. comparable sales for the quarter ended May 1, driven by higher fuel prices that drew more low-income shoppers seeking bargains. The company noted that while rising transportation costs weigh on margins, increased foot traffic and online demand offset the pressure.
Sales growth spanned major segments and digital channels, reflecting a familiar trend where economic uncertainty benefits discount retailers. Higher tax refunds in the quarter may have softened the impact of inflation on lower-income consumers.
Walmart plans to maintain low prices to capture market share, even as higher-income shoppers increasingly use its fast delivery services and premium product offerings.