Looking ahead: While Walmart’s ability to right its ship in less than a year is encouraging, the retailer’s projected holiday sales are less so. Like Amazon, Walmart anticipates sluggish growth this season: The company expects comparable sales to rise just 3% in Q4, excluding fuel, below the 3.5% growth expected by analysts polled by StreetAccount.
But there are signs inflation is beginning to ease in some categories, which will help Walmart keep costs down and give it some flexibility on margins. CEO Doug McMillon noted on the company’s earnings call that Walmart has “seen some downward movement in general merchandise” pricing, a trend he expects will continue into the next year.
- Wholesale prices rose just 0.2% in October, less than expected, due to lower trade, transportation, and warehousing costs, per the Bureau of Labor Statistics’ Producer Price Index.
Walmart’s retail muscle and dominant position in grocery put it in a strong position to continue growing market share in Q4 and beyond, especially as inventory and inflationary pressures ease.
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