{"id":1612651,"date":"2022-08-18T09:26:35","date_gmt":"2022-08-18T13:26:35","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1612651"},"modified":"2022-08-18T09:26:38","modified_gmt":"2022-08-18T13:26:38","slug":"red-hot-inflation-drives-wealthier-americans-to-shop-at-walmart","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-hot-inflation-drives-wealthier-americans-to-shop-at-walmart\/","title":{"rendered":"Red-Hot Inflation Drives Wealthier Americans to Shop at Walmart"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fred-hot-inflation-drives-wealthier-americans-to-shop-at-walmart%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1612651&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Inflation has become such a problem that high-income-class Americans have begun opting for shopping items at destinations like <a href=\"https:\/\/www.theepochtimes.com\/t-walmart\">Walmart<\/a>.<\/p>\n<p>Walmart\u2019s reputation as a discounter is attracting more upper- and middle-class consumers to its stores, said John David Rainey, the company\u2019s chief financial officer, in a recent <a href=\"https:\/\/www.cnbc.com\/2022\/08\/16\/walmart-wmt-earnings-q2-2023.html\">interview<\/a> with CNBC. Budget-strapped consumers are \u201ctrading down\u201d in terms of quantity and quality purchases. For instance, they are buying items like beans and canned tuna rather than beef or deli meats. \u201cClearly, they\u2019re stressed from higher gas prices, higher food prices, and even housing,\u201d he said.<\/p>\n<p>Some shoppers are increasingly using credit more than debit to buy items, Rainey stated. Roughly three-quarters of the company\u2019s market-share gains in food during the fiscal second quarter came from consumers who have annual household incomes of $100,000 and more, the CFO pointed out.<\/p>\n<p>Sales of Walmart\u2019s own branded items have also risen. These branded items\u2014which typically cost less than competitors\u2014saw sales growing twice as fast during fiscal second quarter 2022, compared with the first quarter.<\/p>\n<p>The 12-month Consumer Price Index (CPI), which measures price increase at the consumer level, came in at 8.5 percent in July. Though it was lower than the 9.1 percent inflation in June, the number is still hovering around a four-decade high.<\/p>\n<p>Food costs were up by 10.9 percent and energy by 32.9 percent, <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">data<\/a> from the U.S. Bureau of Labor Statistics showed.<\/p>\n<p>While speaking during the company\u2019s second-quarter 2023 <a href=\"https:\/\/www.fool.com\/earnings\/call-transcripts\/2022\/08\/16\/walmart-inc-wmt-q2-2023-earnings-call-transcript\/\">earnings call<\/a> on Aug. 16, CEO Doug McMillon said that the firm expects inflation to continue influencing the buying choices of families.<\/p>\n<p>Though inflation lifted the average transaction size at Walmart stores, McMillon admitted that higher prices were negatively affecting many families.<\/p>\n<p>\u201cWe\u2019re pleased to see more families from a variety of income levels choose us as they look for value. Our purpose is to save people money and help them live better, and that\u2019s especially important right now,\u201d McMillon said.<\/p>\n<h2>Class-Wide Effect<\/h2>\n<p>Inflation has affected all income classes across America. During March\u2013April, for example, adults earning less than $50,000 a year were already finding it difficult to pay for basic necessities, John Leer, chief economist at credit-decision intelligence company Morning Consult, <a href=\"https:\/\/www.usatoday.com\/story\/money\/2022\/08\/04\/inflation-recession-fears-now-grip-middle-class\/10227240002\/\">told<\/a> USA Today.<\/p>\n<p>This income group started cutting down spending on discretionary categories like travel as they were forced to shell out more on essentials such as food and gas, he said.<\/p>\n<p>In May, inflation began affecting adults earning up to $100,000. By later this year, Leer is expecting individuals who earn more than $250,000 to start feeling the pressure of inflation. \u201cThe second half of the year will be challenging for travel and other discretionary spending,\u201d he said.<\/p>\n<p>A recent <a href=\"https:\/\/www.theepochtimes.com\/inflation-squeeze-forces-45-percent-of-americans-to-cut-spending-on-groceries-poll_4634796.html\">survey<\/a> by Suffolk University\/USA TODAY found that 45.3 percent of Americans had reduced spending on groceries due to inflation. Higher prices also forced 59.4 percent to eat out less often.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-naveen-athrappully\"><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Inflation has become such a problem that high-income-class Americans have begun opting for shopping items at destinations like Walmart.Walmart\u2019s reputation as a discounter is attracting more upper- and middle-class consumers<\/p>\n","protected":false},"author":1,"featured_media":1433187,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1612651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1612651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1612651"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1612651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1433187"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1612651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1612651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1612651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}