close
close

Semainede4jours

Real-time news, timeless knowledge

Walmart has become adept at tricking rich people into flocking to its stores
bigrus

Walmart has become adept at tricking rich people into flocking to its stores

Since its establishment, Walmart It became a guide for bargainers. But the retailer known for its low prices is now appealing to a new demographic: shoppers who make more than $100,000 a year.

Walmart, the world’s largest retailer, reported a strong third quarter, with its chief financial officer citing a new customer base that contributed in part to the increase. Sales totaled just under $170 billion, in-store sales up 5.3%, foot traffic up 3%; but the biggest difference was in e-commerce sales, which increased by 22%.

“We had a really strong quarter,” said Walmart CFO John David Rainey. said Yahoo FinanceHe added that the company achieved gains across all product categories and income groups. Rainey said about 75 percent of stock gains come from households earning more than $100,000 a year; this was a demographic group often associated with shopping. Amazon And Aim.

A spokesman said Walmart highlighted two aspects of the company that “help create a visceral pull” from high-net-worth customers Luck. One is convenience; Walmart offers customers delivery and pickup options “like no other retailer offers,” the spokesperson said. Another boon for Walmart is that it has increased the number of products it offers for sale, which “is bringing in customers who may not have shopped with us before,” the spokesperson said.

This continues the trend that Walmart CEO Doug McMillon highlighted last quarter.

“We are also seeing higher engagement across income brackets, where upper-income households continue to account for the majority of earnings, while increasing sales and share among middle- and lower-income households,” McMillon said on Walmart’s earnings call. August.

Although Walmart has long been praised for its extremely low prices, it has also become a haven for “duped” customers. Duplicates are actually cheaper versions of expensive products that look almost identical. Some replicas fail to match the quality of aspirational or luxury brands, but others get the job done at a lower price point without compromising too much on comfort.

linens, clocks and other household items
The bedroom products go on sale at a Walmart store in Secaucus, New Jersey, USA on Tuesday, March 5, 2024. Walmart is renovating more than 800 store locations and adding high-end products. Photographer: Gabby Jones/Bloomberg via Getty Images

“Walmart’s shift isn’t just about cheaper prices; it’s about redefining ‘value’ to include quality that more affluent customers can’t afford to ignore,” he said. Kaveh Vahdat, founder and president of fractional CMO services company AscensionOppsaid Luck. By blending premium products with their signature affordability, they have made it socially acceptable for high-net-worth shoppers to say, ‘I bought this at Walmart.'”

Beyond it being “socially acceptable” to shop at Walmart, the company has observed that its customers take pride in shopping at the discount retailer, the spokesperson said.