Walmart top executives admit they can’t predict consumer behavior in 2024

Walmart’s top executives said Wednesday it will be more difficult to predict consumer behavior next year as customers become more cautious with their money due to financial stress.

John David Rainey, chief financial officer at Morgan Stanley Global Consumer & Retail, said retailers have identified “unusual behavior” among customers that has “put them on the edge of their seats” when it comes to consumer health and purchasing behavior. A leader in the industry said he witnessed it. meeting.

Mr Rainey said it was “puzzling” that spending in the last two weeks of October was off trend compared to the previous month, but retailers were by no means “alarmed”.

Walmart stock was down 8% on Nov. 16, the first time the company reported October spending in its quarterly results.

Rainey added at the conference that there is “nothing we’ve seen with consumers” or deflationary pricing that will cause retailers to reconsider their long-term plans.

Walmart saw an “unusual type of behavior” in its customers and “made a sit-down” about what consumer health and purchasing behavior looks like, Chief Financial Officer John David Rainey said. Ta. AP

CEO Doug McMillon
CEO Doug McMillon said rising credit card balances and shrinking household bank accounts are raising questions about how much consumers will spend. Reuters

Earlier Wednesday, CEO Doug McMillon said in an interview with CNBC that rising credit card balances and declining household bank accounts are raising questions about how much consumers will spend.

Walmart said last month that U.S. consumers are being more cautious with their spending during the holiday season.

But Thanksgiving weekend data shows that deep discounts on everything from beauty products and toys to electronics encouraged shoppers to spend to reassure anxious retailers. It was shown that it became.



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