Walmart's CFO tells Fox Business why it's consistently attracting higher-income shoppers.
Today's Walmart is far from that Customers have seen historicallyAccording to Walmart CFO John David Rainey. It is not a coincidence
Rainey, who joined the company in 2022 after holding senior positions at PayPal and United Airlines, told FOX Business that the nation's largest retailer is upgrading its brand and improving the look of its stores, which are key factors behind its product appeal. is higher Income buyers
“The Walmart of today is very different than the Walmart of a few years ago,” Rainey said.
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Over the past few years, Walmart has consistently reported an increase in higher-income households. In its most recent fiscal quarter, the company said it continued to “gain market share in the U.S., both in grocery and general merchandise,” with households making more than $100,000 accounting for 75 percent of its dividend. they give
Walmart's modern clothing department (Walmart)
The company reported that Third quarter income It rose more than 5 percent from the previous quarter to $169.6 billion, beating Wall Street's estimate of $167.72 billion. Adjusted earnings per share also beat Wall Street estimates by 5 cents. The company's success has impressed Wall Street, with its stock up more than 60 percent year-to-date.
Rainey credits part of the company's success in attracting a wider range of buyers, including more affluent ones, to expanding its product portfolio, particularly in its e-commerce business. He noted that adding higher-end items, such as Apple products or Bose headphones, that “more affluent customers are looking for” are examples of this strategy.
Rainey acknowledged that the company cannot carry all the brands that “appeal to a broad representation of consumers in our stores.” That's where he said they're leading the way in its online market. The company reported that it has more than 700 million items across its market
But even with this expansion of its traditional portfolio, Rainey reiterated that the company is “not alienating our more traditional customers.”
The modern grocery section of Walmart (Walmart)
One of its main focuses has been on expanding its portfolio, bringing in more brands that appeal to “everyone”. But as more products were added, including high-end items, other suppliers took notice and wanted to join.
“If you're a supplier or a dealer, you actually want to sell your product where people are, where eyes are coming to it. So this really helps us right now,” he said.
Aside from improving its assortment, the company has increased investment in its store experience, Rainey said.
The company is building new modern stores and renovating hundreds of other stores.
Over the past three years, it has renovated an average of about 700 stores each year. During the next fiscal year, Rainey said they will do a little more remodeling.
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“When you walk into one of these remodeled stores, it's a very, very different experience than what you've historically thought about,” Rainey said.
Newly built and renovated stores The company's new store concept will feature improved layouts, a larger product selection and new technology to help associates support customers. The stores have fresh signage, paint, shopping carts and a new checkout design.
Also, interactive displays have been displayed in certain areas of stores and huge goods so that customers can have a better look at the products.
In the United States, the company has more than 4,600 stores and approximately 1.6 million employees. This does not include the 599 Sam's Club membership warehouses that also operate in the United States