Considering that Walmart typically has better food prices that the regular grocery stores, like Food Lion, Harris Teeter, Shoprite, Lowe’s Foods, and whatever else you have in your area, how are they doing when shopper are going even lower cost?
Inflation steers budget shoppers away from Walmart. Bringing them back may not be easy
Walmart Inc could face an uphill battle to reclaim U.S. shoppers who opted for the neighborhood dollar store or Aldi rather than driving farther to a Walmart Supercenter when gasoline was $5 a gallon.
While gasoline prices have dropped nearly 20% over the past month, there are no signs shoppers are returning to the nation’s biggest retailer, according to foot traffic data reviewed by Reuters and analysts.
Inflation remains at a 40-year high, devouring a large chunk of the grocery budgets of many Americans, especially Walmart’s legions of cost-conscious shoppers.
Foot traffic at Walmart’s 3,573 U.S. Supercenters and its 370 discount stores (as of Jan. 31, 2022) fell 2.7% on average from June 1 through July 25 versus a year earlier, according to data from Placer.ai, a location analytics firm.
Meanwhile, traffic rose 11.5% at Aldi, owned by German discount grocer Aldi Süd, and the number of shopper visits climbed 4.1% at Dollar General.
Interesting. Aldi isn’t necessarily less expensive than Walmart for many things, and, certainly aren’t as many nationwide. That more Americans are shopping at Dollar General should be very concerning to the government, but, really, people like Biden couldn’t care less about you peasants
McMillon recently told investors that shoppers – especially from lower-income households – bought fewer items in the three months through April 30, even they also consolidated their trips to the store in response to higher fuel prices.
So, Bidenflation is really hitting the lower class, who couldn’t afford to drive and purchase quality food (if you’ve never been in a Walmart supercenter, you’re missing out. I love tomatoes, and there are lots and lots to choose from. Fresh baked breads and cakes and all sorts of stuff. It’s really good).
Both Walmart and Target Corp issued profit warnings over the past two months, noting that U.S. shoppers responded to the rising cost of living by buying primarily lower-margin food and other essentials, while skipping aisles filled with clothes and sporting goods.
Walmart’s warning in late July was “a diagnostic look at the average American household,” Jefferies analyst Stephanie Wissink said. It showed the squeeze on shoppers’ monthly budgets that also led many to cut back on their trips to grocery stores, she said.
One Target I know has a pretty good grocery experience, the one in Knightdale is hot garbage. Their produce is terrible. Regardless, Bidenflation is causing lots of problems, especially for food. He’s doing such a great job.
Read: Brandonflation Driving Food Shoppers Away From Walmart »