Walmart earnings were used by wealthier shoppers to buy groceries

Walmart Higher-Energy Retail Sales in the New Year: Inflation, Personal Labels, and the Supermarket Light Curve

In its latest quarter, Walmart sales increased 8.3% with more customers buying its private label brands and higher-income households shopping at its stores.

“The consumer is still very pressured,” Walmart CFO John Rainey told CNBC. “And if you look at economic indicators, balance sheets are running thinner and savings rates are declining relative to previous periods. We take a pretty cautious outlook on the rest of the year.

It’s the latest sign that the highest inflation in decades is altering shoppers’ spending habits, including wealthier customers. Food prices increased 10.9% in October from a year ago. Other discount supermarkets and Dollar General

            (DG) have said they are gaining new, wealthier customers because of inflation.

Some shoppers preferred groceries over higher-priced items. Walmart’s grocery sales increased in the “mid-teens” last quarter, while its sales on general merchandise grew in the “low single-digits.”

The National Retail Federation, a trade group for the retail industry, estimates that holiday sales will increase between 6% and 8% this year, slower growth than a year ago.

Wall Street Crashes in a Tight Labor Market: Implications for Retail, Consumer Product and Bankruptcy Operations in the Context of Inflation

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 lower income shoppers continue to be negatively affected by inflation, which could hurt sales this year.

The retail sector has a more difficult period ahead. The industry is expected to have a hard time in the next two years, since holiday sales were sluggish.

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 struggled for a long time and areVulnerable to challenging economic conditions

Target CEO Brian Cornell said this week thatspiraling inflation forced families to put discretionary purchases on hold and focus more on necessities.

David Bergman, finance chief for under armour, said last month that the promotional environment went deeper.

Best Buy Predictions for Retail Consumer Electronics Sales in a Changing Macro Environment (The Case of TJ Maxx and Marshalls)

The consumer electronics industry is affected by the broader macro environment, according to Best Buy finance chief Matt Bilunas. This year, Best Buy predicts comparable sales will decline.

Consumers may benefit from looking for bargains. TJ Maxx and Marshalls are owned by TJX and it expects sales to grow this year. According to Placer.ai, the number of shoppers visiting discount grocers has increased.