Walmart CEO Feels ‘Pretty Good’ About Consumers

McMillon’s chipper tone deviated slightly from the cautious approach he and the company have taken in the past year — and as recently as the company’s second-quarter results, which it delivered in mid-August. At the time, McMillon said consumers were being discerning about how they spent their money, given that they were still facing macroeconomic challenges, including tighter credit markets, higher energy prices, and the resumption of student-loan repayments.

While McMillon is still noticing reluctance to spend among certain customers, lower inflation, a strong labor market, and wage increases have allowed most consumers to keep spending.

What’s more, the back-to-school season was strong this year, McMillon said, a positive sign headed into the holiday season and 2024.

“Things have held up better than I would’ve guessed,” he said Tuesday.

As one of the world’s largest retailers,
Walmart
is often seen as a bellwether for consumer health. Recently, the company’s results have surpassed the retail industry’s uneven performance. Shoppers have flocked to Walmart in search of a better bang for their buck, helping the company’s results — and share price — barrel past competitors.

Walmart stock is up 16% this year, slightly below the
S&P 500
‘s 17% gain but outperforming the
SPDR S&P Retail ETF
‘s 3.9% increase.

“We don’t actually worry that much about whether the economy grows or shrinks,” McMillon said. “If people are value conscious they’ll come our way.”

Write to Sabrina Escobar at [email protected]