Walmart CEO Doug McMillon: Consumers are Prioritizing Value Purchases

Group 1 - Walmart CEO Doug McMillon indicated that consumers are experiencing stress due to persistently high food prices, leading to changes in purchasing behavior such as opting for smaller pack sizes and prioritizing value purchases [1][2] - McMillon highlighted that lower-income consumers are feeling more frustration due to ongoing high food prices, which have persisted for years, contributing to a desire for improvement in their financial situation [2] - Both Walmart and Amazon expressed caution in their first-quarter 2025 outlooks, attributing weak guidance to inflation, weak consumer demand, and foreign exchange challenges [2][3] Group 2 - Walmart's Chief Financial Officer noted that lower-income consumers are still financially stretched, with data showing persistent increases in general merchandise despite elevated grocery prices [3] - Health and wellness sales surged, and eCommerce grew by 20%, while discretionary categories like electronics and home goods experienced only modest gains [3] - Target's CEO reported that consumers are becoming more resourceful and cautious with their spending, with 65% of consumers living paycheck to paycheck, indicating ongoing financial strain [4]