Walmart keeps Thanksgiving meal prices same as last year
Prices for a "typical Thanksgiving meal" will be the same as last year, Walmart CEO Doug McMillon said on a call with analysts Tuesday morning.
Why it matters: The largest retailer in the world is trying to offset high inflation to attract a growing number of budget-conscious consumers.
- "Customers that came to us less frequently in the past are now shopping with us more often, including higher income customers," McMillon said.
- CFO John David Rainey also reiterated how much households earning over $100,000 are driving grocery sales — nearly three quarters of the company's gains in grocery market share are coming from this income group.
Between the lines: The company is tinkering with prices to balance demand with inventory.
- And in the case of a pivotal holiday like Thanksgiving, it's cutting prices of products including whole turkeys to under $1 per pound (according to McMillon).
- And while the company raised its annual revenue and profit outlook, executives were tempered in their optimism.
- "We've seen incremental levels of inflation month over month be less significant, but it's not clear if this represents a sustainable trend," said Rainey.
- "[And] despite a good start to Q4, our guidance assumes that the consumer could slow spending, especially in general merchandise categories."
Of note: Walmart also announced it's agreed to pay $3.1 billion to settle several opioid-crisis lawsuits.
- Walmart's stock popped nearly 8% in pre-market trading and rose more than 7% intraday.