BENTONVILLE, Arkansas – Walmart, the nation’s largest retailer, has announced it will cut prices on thousands of products due to strong profits last quarter and easing inflation.
In a recent conference call, the company’s CEO, Doug McMillon, said the company made its decision in the wake of strong results for the second quarter of fiscal 2025. Those results, McMillon said, showed that consumers are still turning to the retailer for everyday items.
The price cuts affect 7,200 items in various categories, Quartz reported.
“In terms of value, we are lowering prices,” McMillon said. “We have less upward pressure, but there are some who are still talking about cost increases, and we are aggressively fighting back against that because we believe prices need to come down.”
According to CNBC, the key growth areas in sales included food and general merchandise as well as the US health and wellness division.
Walmart’s price cuts come as consumers, suffering from high inflation, are increasingly placing value on inexpensive products, according to Quartz. Major retailers such as Target, Amazon and Walmart announced plans to cut prices in May to attract price-conscious shoppers.
As the largest US retailer, Walmart could now further consolidate its market dominance through these strategic discounts.
Overall inflation was unchanged at Walmart in the quarter. Sales growth was due to higher unit sales, not higher prices, Chief Financial Officer John David Rainey told CNBC. But prices for several food items – dairy, eggs, sugar and meat – stubbornly continued to rise, while they were stagnant or falling for others – pet food, apples, potatoes, strawberries, sporting goods and lawn and garden items.
According to data firm Scrape Hero, Walmart has more than 4,600 locations in the United States.
Earlier this year, the retail giant announced plans to open more than 150 stores and thousands of jobs over the next five years. It also said it would remodel 650 stores in 47 states and Puerto Rico by 2024. The modernization efforts are a continuation of the retailer’s “Store of the Future” strategy, which began in 2023.
However, Walmart has also taken steps to close less profitable locations. In 2023, more than 20 stores will close, mostly in response to theft issues and lower-than-expected sales. More stores have been closed this year, and in April Walmart announced it would close its health centers and virtual care services across the country, which had failed to meet expectations.
