Red-Hot Inflation Drives Wealthier Americans to Shop at Walmart
Inflation has become such a problem that high-income-class Americans have begun opting for shopping items at destinations like Walmart.
Walmart’s reputation as a discounter is attracting more upper- and middle-class consumers to its stores, said John David Rainey, the company’s chief financial officer, in a recent interview with CNBC. Budget-strapped consumers are “trading down” in terms of quantity and quality purchases. For instance, they are buying items like beans and canned tuna rather than beef or deli meats. “Clearly, they’re stressed from higher gas prices, higher food prices, and even housing,” he said.
Some shoppers are increasingly using credit more than debit to buy items, Rainey stated. Roughly three-quarters of the company’s market-share gains in food during the fiscal second quarter came from consumers who have annual household incomes of $100,000 and more, the CFO pointed out….