Walmart CFO John David Rainey said during the retailer’s latest quarterly earnings call this week shoppers were filling their gas tanks with fewer than 10 gallons of gas on average for the first time since 2022.
While high-income customers are doing fine and spending robustly, he said, the same can’t be said about lower-income consumers.
“The lower-income consumer is more budget conscious and perhaps navigating financial distress,” he added.
The higher inflation fueled by skyrocketing gas prices has the potential to hit customers’ wallets, Rainey added.
“I think it’s possible that if fuel prices persist at this level, you may see some upward pressure on average unit retail prices,” he said.
Walmart isn’t the only company sounding the alarm about consumers changing their buying habits due to economic pressure.
Dollar General’s latest earnings from March also revealed a surge of 122% in the company’s $426 million net income compared to the same period last year. This was partly a result of a value-conscious consumer, CEO Todd Vasos said.
