WALMART’s CEO confirmed that the chain has cut prices on over 7,000 products, but in a certain part of the store, costs will not decrease.
Doug McMillon explained in a recent conference call that inflation has a huge impact on the prices offered to buyers.
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According to AL.com, the CEO said the chain has cut prices on 7,200 items in all stores.
These included food items such as apples, potatoes and strawberries or some non-perishable products such as sporting goods and gardening items.
“Because it’s about value, we’re lowering prices,” McMillon said.
Walmart’s CEO explained that the company achieved this by increasing business efficiency and thus saving costs.
“It’s great to see prices coming down,” McMillion added.
“We are committed to lowering prices and will continue to work to achieve further price reductions so that customers and members can save money.”
He added that the business does not want to pass on the additional costs to consumers.
“We are not raising prices. We are lowering them,” the CEO said.
“We don’t want product margins to increase.”
The store has increased the number of its short-term “rollbacks,” resulting in a 35% increase in these types of discounts compared to the previous year.
Nevertheless, the costs of certain goods remained high during these other price reductions.
According to CNBC, dry foods and processed products were hit by “more stubborn” inflation.
These included products such as lemonades, teas and frozen pizza.
There were even price increases for some important food items such as dairy products and sugar.
Walmart CEO on price cuts
CEO Doug McMillon announced that the chain has cut prices on 7,200 items in all stores.
“Because it’s about value, we’re lowering prices,” the CEO said.
“It’s great to see prices coming down.
“We are committed to lowering prices and will continue to work to achieve further price reductions so that customers and members can save money.”
Source: AL.com
McMillion said in the call that he had put pressure on suppliers to lower their prices.
“We are seeing less upward pressure, but some are still talking about cost increases and we are aggressively resisting that because we believe prices need to come down,” he added.
BIG CHANGES
As The US Sun previously reported, these price changes weren’t the only differences customers may have noticed at their local Walmart stores.
The grocery giant announced that it will soon introduce digital price tags at thousands of locations.
Store managers confirmed that these new signs will be seen in more than 2,000 stores by 2026.
Staff could control these prices via an internal mobile app instead of manually changing paper labels.
