Walmart’s Big Data Results: The Rise of Discretary-Binding During the Black Hole Phase of the First Three Months

Walmart said on Tuesday that it saw an 8% sales increase during its latest quarter at US stores open for at least one year, with more customers buying its private label brands.

Neil said in an email to clients that consumers are looking for value and low prices despite the tough times.

Growth during the holidays was led by grocery sales, according to the company. Government inflation data shows that grocery prices have increased 11.3% over the last year, and more shoppers are turning to discount chains like Walmart to save money. The slower sales of traditional holiday products like toys, electronics and clothing is a sign that some consumers are cautious with their discretionary spending.

Target, Best Buy, Macy’s and many other chains say shoppers are cutting back on discretionary goods. They have shifted their spending to paying for groceries and household basics.

The National Retail Federation says that holiday sales will increase between six to 8%, slower growth than a year ago.

Inflationary Pressure in Retail: Predictions for Closed-Sample Target, Target, Serta Simmons and Joann Fabric

Walmart recently announced that it will raise its minimum wage from $12 to $14 an hour as it tries to retain store workers in a tight labor market for lower-wage industries. (Home Depot

            (HD)on Tuesday also said it will spend $1 billion this year to raise wages and other compensation.)

Walmart’s raise will impact profit, squeezing margins at the same time as its core lower-income shoppers continue to be hit by inflation, which could dent its sales this year.

The retail sector as a whole faces a more difficult period. Holiday sales were sluggish for many retailers, and the industry is expected to have a weaker 2023.

Bankruptcies are piling up: Party City, Tuesday Morning, mattress manufacturer Serta Simmons and Independent Pet Partners, a pet store retailer, have filed for bankruptcy in recent weeks.

Bed Bath & Beyond, Rite Aid, Joann Fabric and other chains are also on bankruptcy watch, according to credit rating agencies. These companies have been struggling for years and are most vulnerable to economic difficulties.

Brian Cornell, CEO of Target, said this week thatSpiraling inflation forced families to put discretionary purchases on hold.

“The promotional environment went a little bit deeper, and we believe it’s going to go a little bit longer,” Under Armour

            (UA) finance chief David Bergman said last month.

Consumer electronics sales increase due to the macro environment: Best Buy, Marshalls, Aldi and Placer.ai say the same is happening

“The consumer electronics industry continues to feel the effects of the broader macro environment and its impact on consumers,” Best Buy finance chief Matt Bilunas said. Best Buy says its comparable sales will decline this year.

Some discount chains are able to benefit from consumers looking for bargains. TJX, the parent of TJ Maxx and Marshalls, said it expects comparable sales to grow by up to 3% this year. Shopper visits to discount grocers such as Aldi have also increased, according to analytics firm Placer.ai.