Walmart is seeing a major surge in shoppers as Americans continue searching for relief from rising living costs. According to the company’s latest quarterly report, customers across income groups are increasingly choosing Walmart for essentials — and they’re buying more when they visit.
A Shift Driven by the Cost-of-Living Crunch
With inflation and elevated prices affecting nearly every household, Walmart has become the preferred stop for everything from groceries to clothing. The retailer’s U.S. business grew 4.5% last quarter, supported by more frequent store visits and higher average spending per trip.
The company’s sheer size continues to work in its favor. Walmart has spent billions on store upgrades, online logistics, and higher wages — investments that are now helping it outperform most competitors.
Middle- and Higher-Income Shoppers Fuel Growth
A notable trend this year has been the increased presence of middle-class and even upper-income shoppers at Walmart. These customers, who once spread their spending across other chains, are now turning to Walmart to stretch their budgets.
The retailer says this shift has helped it gain significant market share, particularly in categories where Target and dollar stores have been slowing.
Grocery Strength Gives Walmart an Edge
One of Walmart’s biggest advantages is its grocery business — a segment that keeps customers coming back regularly. Improvements in fresh produce and expanded food offerings have strengthened customer loyalty at a time when food prices remain a major concern nationwide.
Walmart has also narrowed the gap in other areas, such as apparel and home goods, allowing it to compete more directly with Target.
Pressures Hit Target and Discount Chains
While Walmart reports rising traffic, Target continues to struggle with flat sales. Dollar stores, often seen as the go-to option for low-income shoppers, are losing ground as consumers seek better value on essentials.
Walmart’s scale allows it to hold prices lower than many rivals, helping it attract cost-conscious households from across the income spectrum.
Strong Guidance and Leadership Change Ahead
Walmart raised both its sales and profit forecasts, signaling confidence for the holiday shopping season and the months beyond. Alongside the earnings news, the company announced an upcoming leadership shift:
Doug McMillon, CEO for 11 years, plans to retire, with John Furner, head of Walmart’s U.S. operations, set to take over in February.
