Retail giant Walmart issues economic warning

Walmart tops all retailers in the United States when it comes to sales, according to data from Capital One.

The retail giant’s $675.6 billion in global sales was almost twice as much as second-place Amazon, which came in at $394.1 billion in 2024 sales data.

Walmart’s international-only (i.e., non-U.S.) revenues in 2024 totaled $106.9 billion. Walmart operates 10,822 stores in 19 countries. 84% of Walmart’s sales take place in the United States, where it holds a 9.42% share of the retail market.Walmart’s U.S. retail sales are 107.8% greater than those of runner-up Amazon.

Controlling nearly 10% of all U.S. retail sales gives Walmart a unique perspective on the economy. What the company’s new CEO, John Furner, shared during his first earnings call in the big chair offered a sobering view of the current economic reality.

Walmart sees careful customers

Furner led Walmart’s fourth-quarter earnings call with investors.

“In the U.S., we see the customer as choiceful in their spending. Again, this quarter, the majority of our share gains came from households making more than $100,000,” he shared.

That’s not Walmart’s typical core audience, but American consumers have been trading down to save money. Furner shared more insight on the company’s lower-income customers.

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“For households earning below $50,000, we continue to see that wallets are stretched. And in some cases, people are managing spending paycheck to paycheck,” he added.

He did share some positive insight.

“That said, even these households are emphasizing convenience nearly as much as price,” Furner shared.

Walmart has seen more higher-income customers.

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Americans are trading down

Federal Reserve Chairman spoke about the idea of Americans trading down on purchases during a recent press conference, Fox Business reported.

“We also know that for some time now, for a year or more, we’ve been hearing from retailers, for example, that serve lower-income customers, whether it be food or the big box stores or any of that — they’re saying the same thing, which is our consumers are looking to economize,” Powell said. 

He acknowledged significant changes in spending habits.

“They’re trading down from brands, and they’re buying less, and it’s changing their buying habits, and that kind of thing. That’s a reality of what we’re seeing. They’re still consuming, but they’re feeling it in a different way,” he added.

Lower-income consumers are also putting off certain purchases, according to research from McKinsey.

“Across categories, but particularly in footwear, groceries, home improvement, and apparel, more lower-income consumers say they delayed purchases than those with higher incomes. People are also trading down by going to lower-priced stores, switching to brands that cost less, or adopting a buy now, pay later approach,” the report showed.

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