According to Doug McMillon, Walmart’s president and CEO, “The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars. We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart U.S.”
Because food inflation in particular is both in the double digits and higher than it was at the end of the first quarter, customers have been rendered incapable of making the general merchandise purchases that they otherwise would. In an effort to remedy this, the retail giant will mark down these items further to account for consumers’ purchasing ability.
Notably, the company has made market share gains in the area of groceries, which it attributes to people choosing to shop at the retailer to save money on necessary products.
Despite enduring inflation paired with high gas prices, the White House refused Monday to define a “recession.”
After a reporter asked White House press secretary Karine Jean-Pierre the definition that the administration is relying on, she responded that she will not define it from the podium.
“We are seeing historic unemployment,” she explained, also pointing to job creation. “Those indicators do not show that we are in a recession or even a pre-recession,” Jean-Pierre told another reporter.