Walmart has cut prices on 7,200 items this summer as part of its “price cut” initiative, but one division is being more “stubborn” when it comes to price cuts.
In an email to USA Today, Walmart said a rollback is a term the retail giant uses to describe temporary price reductions on items that last for 90 days or more. About 35% of Walmart's rollbacks were on food.
Despite the price cuts, Walmart CEO Douglas McMillon said the grocery category “remains in a state of moderate inflation” at the end of the retail giant's second quarter, which runs from May to July 2024. Walmart's fiscal 2025 ends on Jan. 31, 2025.
Great Value Meal Wars:Fast food restaurants and restaurants offer discount menus
“Within the dry food category, packaged consumer goods are the most persistent area of inflation,” McMillon said during the company's quarterly earnings call on Aug. 15.
Protect your assets: Best high-yield savings accounts for 2023
Cereal is just one example of a dry, processed food.
He expects brands to try to boost sales by lowering prices slightly and investing in product pricing, but some are still considering raising prices.
“We don't expect the numbers to deflate significantly going forward,” McMillon said. “They will probably stabilize closer to current levels, reflecting the composition that we just described.”
Attract younger customers
McMillon said both Walmart and Sam's Club offered slightly lower prices overall during the quarter.
“Customers at all income levels are looking for value, and we're providing that,” he said.
Sam's Club is seeing membership growth across a broad range of income levels and among younger generations, with “Gen Z and millennials accounting for roughly half of new members in the second quarter,” said John David Rainey, Walmart's chief financial officer and executive vice president.
He added that this was “a positive sign for the future growth of the business.”
Julia is a popular reporter for USA Today, covering a variety of topics from business and government to technology and pop culture in her hometown of Miami. LinkedIn Or follow her X, formerly Twitter, Instagram and TikTok: @juliamariegz