MOBILE, Ala. (WPMI/AP) — Walmart said inflation is actually pushing them to cut prices on some products. Walmart is cutting prices on clothing, and some big-ticket items to avoid inventory buildup (Video: WPMI)
CEO Doug McMillon said rising food and fuel prices have many shoppers pulling back on many discretionary items, like not buying new clothes and other items.
To get rid of a huge buildup of inventory, the company said it’s slashing prices on clothing and some big-ticket products.
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The company, based in Bentonville, Arkansas, also expects a general slowdown in customer spending in the second half of the year.
Inflation remains at the forefront of many Americans’ minds. Stock markets were spooked Monday, The Associated Press reported after the retail giant warned its profits are being hurt by rising prices for groceries and gas, which are forcing shoppers to cut back on more profitable discretionary items such as clothing.
Walmart’s profit warning in the middle of the quarter was rare and raised worries about how the highest inflation in 40 years is affecting the entire retail sector.
The stocks of many major retailers, including Target, Macy’s, and Kohl’s, fell following Walmart’s Monday announcement. The warning follows reports by Walmart, Target, and other major retailers in May that a faster-than-expected shopper shift away from items that were popular at the height of the pandemic, such as casual clothing and home goods, left them with extra inventory they needed to further discount.
