Walmart’s U.S. chief vowed to do “everything” he can to keep prices low, as the nation grapples with recent disasters and inflation amid a quickly approaching holiday shopping season.
“Before the storms hit, really, we weren’t seeing any real inflation across the business with probably the exception of the dairy category. And as you know, these commodity categories, they can move around a bit. But we’ve been working on a lot of things to keep prices lower, and keep prices at the point they were last year and the year before,” Walmart U.S. President and CEO John Furner said on “Mornings with Maria” Monday.
“We always keep our eye on value,” he continued. “The purpose of the company is, and has been for years and years, to help people save money and live better. And we take that saved money really seriously.”
The big box retailer is widely known for its rollback and price-matching deals, while offering affordable options on everyday brands. However, the company has not been immune to their 37 million daily customers’ inflation concerns.
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Last week, the Labor Department’s September consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.2% in September from the prior month and was up 2.4% from a year ago.
Food prices increased 0.4% on a monthly basis and were up 2.3% from a year ago. Beef, veal, pork and poultry saw the most significant price hikes.
Walmart’s CEO noted how the company has launched internal initiatives that help keep costs from being passed to shoppers.
“We started working on some programs with our meals around holidays in particular, to ensure that we were pricing those meals at the same price we were the year before. And then this year, even for a holiday like Thanksgiving, we’re able to bring down the cost of the meal just a bit,” Furner explained.
“What would not help would be some sort of disruption to the supply chain. So hurricanes can do that temporarily,” he added. “Having the right supply, having the supply chains flow across the country, those are helpful to ensure that customers and consumers all over the country are getting the things they need. And if we can do that, then I think we can avoid some of the risks that we may have seen had we gotten a situation where we had big shortages.”
Investors are also expecting Walmart’s Q3 earnings in the coming weeks. Furner hinted at positive outcomes as Walmart saw strong demand in traffic and units sold across income groups.
“We try to remind ourselves all the time, consumers are smart, they’re very rational. And if your value is outstanding and your price is outstanding and you execute well, then you’ll get the business you deserve,” he said.
“And we take that saved money really seriously. So we work on the things that we can do that lower costs of operations. If we can lower our costs, we can pass through, then, better retails on to our customer… We’ve seen a customer throughout the first quarters of the year that we would describe as resilient, yet choiceful. Certainly, employment has helped, incomes have been stronger, but they’ve definitely been choiceful regarding the things that they are putting in their basket, they’re buying to feed their family.”
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FOX Business’ Eric Revell contributed to this report.
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