Deflation could be coming this holiday season, Walmart CEO says

Deflation could be coming this holiday season, Walmart CEO says


Shoppers may get an early present this holiday season: falling prices in many gift-giving categories.

On Thursday, Walmart CEO Doug McMillon said deflation could be coming as general merchandise and key grocery items, such as eggs, chicken and seafood get cheaper.

He said the retailer expects some of the stickier higher prices, such as the ones for pantry staples, to “start to deflate in the coming weeks and months,” too.

“In the U.S., we may be managing through a period of deflation in the months to come,” he said on the company’s Thursday earnings call. “And while that would put more unit pressure on us, we welcome it, because it’s better for our customers.”

For more than a year, consumers have coped with inflation that peaked around four-decade highs and drove up the cost of nearly everything, including groceries, rent and utilities. But McMillon’s comments echoed what the government and other retailers said earlier this week, offering signs of relief for inflation-weary consumers.

Inflation was flat month over month, according to the latest consumer price index report from the Labor Department on Tuesday. Core CPI, a metric that excludes the categories of food and energy that tend to be volatile, hit a two-year low. Home Depot CFO Richard McPhail said “the worst of the inflationary environment is behind us” on an earnings call Tuesday.

Even Thanksgiving will be lighter on Americans’ wallets compared with last year. Lower turkey prices mean that the average cost of a dinner for 10 people will be $61.17, down 4.5% from last year’s record of $64.05, according to the American Farm Bureau Federation.

Stubborn inflation has been one of the biggest challenges for retailers, including Walmart, the world’s largest retailer. It felt pressure from that again in the fiscal third quarter, even as it beat Wall Street’s sales and earnings expectations. Chief Financial Officer John David Rainey told CNBC that shoppers have waited for items to go on sale before buying them, such as holding out for a Black Friday event.

There’s still some time to go before inflation completely eases, however. Across most categories, Americans are still spending more on the same items, according to the latest CPI numbers. Food at home, electricity and haircuts cost more than they did a year ago.

At Walmart, groceries are up by a mid-single-digit percentage compared with last year, but still elevated by the high-teens percentage compared with two years ago, Rainey said.

Walmart’s McMillon said some stubborn food prices continue to be a concern.

“The pockets of disinflation we are seeing are helping, but we like to see more, faster,” he said.



Source

As media reckons with strategic shifts, a new crop of leaders is coming into play
Business

As media reckons with strategic shifts, a new crop of leaders is coming into play

Warner Bros. Discovery Chief Financial Officer Gunnar Wiedenfels walks to a session at the Allen & Company Sun Valley Conference on July 9, 2025 in Sun Valley, Idaho. Kevin Dietsch | Getty Images Legacy media is in a time of tumult. And it’s bringing a new crop of decision-makers to the fore. In an industry […]

Read More
Goldman Sachs is set to report second-quarter earnings — here’s what the Street expects
Business

Goldman Sachs is set to report second-quarter earnings — here’s what the Street expects

Goldman Sachs CEO David Solomon speaks during the Goldman Sachs Investor Day at Goldman Sachs Headquarters in New York City, U.S., February 28, 2023.  Brendan Mcdermid | Reuters Goldman Sachs is scheduled to report second-quarter earnings before the opening bell Wednesday. Here’s what Wall Street expects: Earnings: $9.53 per share, according to LSEG Revenue: $13.47 […]

Read More
GM expands production of gas-powered SUV, trucks in Michigan
Business

GM expands production of gas-powered SUV, trucks in Michigan

UAW Local 5960 member Kimberly Fuhr inspects a Chevrolet Bolt EV during vehicle production on May 6, 2021, at the General Motors Orion Assembly Plant in Orion Township, Michigan. Steve Fecht for Chevrolet General Motors said Tuesday it will move production of a gas-powered SUV to an assembly plant in Michigan and add manufacturing of […]

Read More