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

Consumer Trends - Higher-income consumers are shopping more frequently at Walmart, a trend observed for some time [2] - Lower-income consumers are facing pressure due to years of price inflation, although recent low single-digit inflation and lower gas prices offer some relief [2][3] - Walmart U S has over 7,000 rollbacks in place to keep prices down [4] Inflation and Pricing Strategies - In-store inflation at Walmart is 1.3%, compared to a national average of nearly 3% [3] - Grocery store inflation has been 25% over the last 5 years [3] - Walmart is actively managing costs by improving quality, changing country of origin, and moving factories to maintain lower prices [4] Business Performance and Strategy - Walmart's margins are tight, around 4% [5] - The company is approaching $1 trillion in retail sales [5] - The business model is evolving with income from membership and advertising, changing the composition of the income statement [6] Leadership Transition - Doug is leaving his leadership role at Walmart to pursue a combination of business and philanthropic endeavors [1][7][9]