Walmart Keeps Picking Up More High-Income Customers

Walmart keeps hoovering up high-income households.

Walmart (WMT) took market share from food and general merchandisers because it’s pulling in so many big earners, CEO Douglas McMillon said Tuesday. Americans who earn more than $100,000 annually drove three-quarters of the shift in share, McMillon estimated.

Walmart has noticed this trend for several quarters, and McMillon told investors on an earnings call Tuesday that it could be more than a fad. “It gives me more optimism that this is something that’s going to last a long time,” McMillon said, according to a transcript of the call made available by AlphaSense.

The retailer beat Wall Street estimates, reporting $4.58 billion in profit, or $0.57 a share, in the latesat quarter. Executives revised their forecasts, offering rosier projections for year-end figures. Walmart’s stock was trading at an all-time high Tuesday morning.

The amount of food Walmart sold grew at the fastest pace in four years, according to CFO John David Rainey, who noted rising sales of gluten-free items, grass-fed beef and organic produce, particularly in pick-up and delivery orders.

About 30% of customers who get deliveries opt to pay a fee to receive the items more quickly, Walmart said. The brand believes its membership program and delivery service are particularly attractive to those with six-figure incomes.

“Those that have more discretionary income and want to save time are liking what we’re doing,” McMillon said. “That’s one of the things that makes this moment in time different.”