More High-Income Americans Are Becoming Walmart Shoppers

Higher-income households are increasingly Walmart (WMT) shoppers. 

The retail giant, shares of which were surging more than 6% in intraday trading Thursday after the company reported quarterly results and an improved outlook, said it saw its U.S. market share improve in the latest quarter, with gains “primarily” driven by wealthier households. That helped drive comparable sales gains above 4% in Q2. 

Walmart is “seeing higher engagement across income cohorts, with upper-income households continuing to account for the majority of gains, even while we grow sales and share, among middle and lower income households,” Chief Financial Officer (CFO) John David Rainey said in a Thursday conference call, a transcript of which was provided by AlphaSense. 

Walmart’s Earnings Came Same Day as Strong US Retail Sales Data

Walmart’s earnings arrived alongside the latest monthly U.S. retail sales data, which came in stronger than economists expected, signaling a resilient consumer.

Lower-income households still choose Walmart largely because of prices, executives said Thursday. At higher-income levels, they said, the growth is also being helped by Walmart+ memberships, delivery service, and store remodelings. 

“In the U.S. stores, I think all these things are coming together to give us a shot at continuing to have growth with higher-income levels regardless of what happens in the economy,” Chief Executive Officer (CEO) Doug McMillion said Thursday. 

The market-share news echoed statements from management after the company reported its first-quarter results. “We’re not trying to chase higher-income cohort sales,” McMillon said at the time. “We just offer value.”