Usa India Government Health reports Usa India

A warning from Walmart about the health of the American consumer

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found solace in the American consumer. On the surface, Walmart’s fourth-quarter results look like exhibit A for the optimists.

The company’s comparable sales in America grew by a faster-than-expected 8.3%, compared with a year earlier. Look closer, though, and the earnings are full of warning signs.

A big reason for Walmart’s market-share gains in groceries was cash-strapped consumers, including high-income families, trading down from fancier supermarkets.

Its higher-margin discretionary offering, which includes toys, clothes and homeware, did less well. That was despite heavy discounting of wares in order to clear inventories overstocked as a result of post-pandemic miscalculation about shoppers’ appetite for things like garden furniture.

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