Inflation accelerated significantly last year, hitting a four-decade high of 9.1% in June 2022, pushing food prices higher. This led to many retailers experiencing consumers pulling back on spending. While inflation has fallen sharply from its peak, it is still higher than the Fedâs target. According to a Labor Department report, the Consumer Price Index […] October 26, 2023 [Option Sensei] [Walmart (WMT) Tackles Inflation: Buy or Sell Move for Investors?]( Inflation accelerated significantly last year, hitting a four-decade high of 9.1% in June 2022, pushing food prices higher. This led to many retailers experiencing consumers pulling back on spending. While inflation has fallen sharply from its peak, it is still higher than the Fedâs target. According to a Labor Department report, the Consumer Price Index (CPI), a closely followed inflation gauge,[Â grew 0.4% in September]( and 3.7% year-over-year, beating respective Dow Jones estimates of 0.3% and 3.6%. Food costs were up 0.2% for the third quarter in a row. On a 12-month basis, food costs jumped 3.7%, including a 6% surge for food away from home. Walmart Cuts Grocery Prices Amid Inflation With persistent inflation in mind, popular grocery chains are trying to help customers save with new deals.[Â Walmart Inc. (WMT)]( the countryâs largest grocer, recently announced that it would be âremoving inflationâ on some of its grocery prices starting next month. âThis year, finally, we are able to have the Thanksgiving basket that the[Â prices are coming down versus a year ago]( — we are really proud to say that the price of a Thanksgiving meal is going to come down,â Walmart U.S. President and CEO John Furner said during an exclusive interview on âGood Morning America.â Last year, during a period of historically high inflation, WMT sold Thanksgiving ingredients at the same price as 2021. This year, the Thanksgiving basket from Walmart includes ingredients to make a meal for up to 10 people, which the company will âsell for around $2 less than last yearâ at just over $70. Furner added that this move of cutting prices comes on the heels of consumer feedback: About 92% of its shoppers have expressed âsome level of concern about inflation and how it will impact holiday celebrations.â Like Walmart, fast-growing discounter Aldi expressed a similar sentiment about âhigh food pricesâ and announced price cuts of up to 50% starting November 1 and running through the year-end on more than 70 Thanksgiving favorites. With food retailers offering temporary discounts on select items during peak seasons, including the holidays, a high volume of customers would drive into their stores and online for substantial savings. This is an effective way to boost sales, build customer loyalty, and have a competitive edge over peers. Overall, holiday sales in November and December have averaged[Â approximately 19% of total retail sales]( over the last five years, and the figure can be higher for some retailers, according to the National Retail Federation. Strong sales during the holiday season should give a solid boost to WMTâs stock. Shares of the retailer have gained nearly 6% over the past six months and 17% over the past year. Letâs look at several other factors that could influence WMTâs performance in the upcoming months. Robust Financial Performance For the fiscal 2024 second quarter that ended July 31, 2023, WMT reported revenue of $161.63 billion, beating analystsâ estimates of $160.27 billion. This represents a 5.7% year-over-year increase. Its adjusted operating income rose 8.1% from the prior-year quarter to $7.40 billion. The companyâs consolidated net income was $8.05 billion, an increase of 56.5% year-over-year. Furthermore, the retailerâs adjusted EPS came in at $1.84, compared to $1.77 in the previous yearâs period and the $1.71 expected by analysts. Its free cash flow for the six months ended July 31, 2023, was $9 billion, representing an increase of $7.20 billion compared to the same period in 2022. âWe had another strong quarter. Around the world, our customers and members are prioritizing value and convenience. Theyâre shopping with us across channels â in stores, Samâs Clubs, and theyâre driving eCommerce, which was up 24% globally. Food is a strength, but weâre also encouraged by our results in general merchandise versus our expectations when we started the quarter,â said Doug McMillon, WMTâs President and CEO. âOur associates helped deliver increases in transaction counts and units sold, and profit is growing faster than sales. Weâre in good shape with inventory, and we like our position for the back half of the year,â McMillon added. Walmartâs CFO, John David Rainey, said he feels better about spending patterns than he did three months earlier, yet he described the consumer as âchoiceful or discerning.â He added that seasonal moments like the Fourth of July holiday and back-to-school have helped drive sales during the second quarter. Upbeat Full-Year Guidance WMT raised its full-year 2024 forecast as the retailer stays committed to its low-price strategy to draw grocery customers and boost online spending. The big-box retailer now expects… Continue reading at [INO.com]( SPONSOR [The Fed's Boldest Move Ever...]( A national currency "reset" is coming to America. With every dollar soon under Fed control, how will FedNow impact your day-to-day expenses?... your paycheck?... your social security?... your investments? Don't wait to find out. [Donât wait to find out.]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. 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