Walmart CEO Doug McMillon on the consumer: There's pressure on lower-income households

Consumer Behavior - Higher-income consumers, particularly those earning $100,000 or more, are shopping more frequently at Walmart, while there is pressure on lower-income consumers due to inflation and price increases in certain categories [2][3] - Current inflation in Walmart stores is reported at 1.3%, compared to nearly 3% nationally, but grocery store inflation has risen by 25% over the last five years, indicating persistent challenges for lower-income shoppers [3] Pricing Strategy - Walmart has implemented over 7,000 price rollbacks in the U.S. to maintain affordability in both food and general merchandise [4] - The company has improved product quality and adjusted sourcing strategies to manage costs effectively, demonstrating flexibility in inventory management [4][5] Financial Performance - Walmart's margins are currently tight, around 4%, with a revenue target approaching $1 trillion [5] - The business model has evolved, incorporating income from membership and advertising, which has altered the composition of the income statement [6]