• Sun. Jun 23rd, 2024

Walmart’s Strategic Response to Inflation: Navigating the Cycle of Success

BySamantha Nguyen

Jun 10, 2024
Three Major Trends Are Benefitting Walmart

Walmart US CEO John Furner recently announced the company’s strategy for dealing with inflationary periods to investors. The retail giant aims to remain low cost for customers by being the last to raise prices, a move that is part of their overall success in capitalizing on interrelated trends of inflation, e-commerce growth, and cost reductions.

Firstly, Walmart is benefiting from inflation as customers seek refuge from high prices elsewhere. As more customers turn to online shopping, Walmart is able to increase sales and lower the relative cost of offering goods and services. This leads to a second trend of lowering e-commerce fulfillment costs through densification and increased efficiency in order delivery.

With savings from fulfillment costs, Walmart is reinvesting into making price cuts on over 7,000 items, resulting in a 45% increase in discounts compared to the previous year. These price reductions, combined with improvements in store operations and a focused merchandising strategy, attract even more customers to Walmart, creating a cycle of success.

Walmart’s ability to maintain low prices and offer discounts while also enhancing its e-commerce capabilities positions them for continued success in the retail market. By leveraging the flywheel effect of these three major trends – inflation, e-commerce growth, and cost reductions – Walmart is able to win and retain new customers during times of economic uncertainty for consumers.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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