Gerri Willis of Fox Business reports how a pricing war between the United States and China can have an impact on retail products and companies that move on the global markets.
Walmart – the country’s largest private employer – Warned possible price increases on Thursday given uncertainty in the price environment.
“We will do our best to maintain our prices as low as possible, but given the scale of the prices, even at the reduced levels announced this week, we are unable to absorb all the pressure given the reality of narrow retail margins,” said Doug McMillon, CEO of Walmart, in a press release, because the detailer reported his first trimester results. Wall Street.
Consumers could see price increases at the end of May, Walmart’s financial director John David Rainey told CNBC.
Despite tariff uncertainty, the company said it “plays the offensive” and could make strategic investments to strengthen its value proposal.
Costco, Walmart calls on rich buyers
Folder photo: A buyer travels clothes in a Walmart store in Flagstaff, Arizona, October 19, 2022. (Reuters / Lisa Baertlein / Photo File / Reuters Photos)
This follows a recent meeting between McMillon and the president Donald Trump To discuss the current trade negotiations and the impact of prices on imported goods. A Walmart spokesperson told Fox Business that the meeting was “productive” and that the company appreciated the opportunity to share its perspective. The United States has reduced the “minimis” price on cheap products from China by 120% to 54%, according to an executive decree signed this week by Trump.
Almost two thirds of American Walmart spending go to produced, assembled or cultivated products in the United States, but the remaining third comes from the world, China and Mexico being the largest contributors.
The company based in Arkansas, which economists use as a gauge to understand the health of consumers, said revenues of $ 165.6 billion, which is in line with expectations. The benefit adjusted by slightly beaten action Expectations of Wall Street.
For the first time, its electronic commerce activity has reached a complete profitability district in the United States and worldwide. Electronic sales sales increased by 22%. Sales in American stores open at least one year increased by 4.5% due to the strong growth in health and grocery segments.
However, the company has seen weakness in the category of general goods, which are generally higher margin products. The company has specifically declared lower sales in electronics, home and sports items. However, this was compensated by the force of toys, clothing for the automobile and children, said Walmart.
Customers buy in a Walmart store on May 18, 2023 in Chicago, Illinois. (Scott Olson / Getty Images / Getty Images)
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The company has declared that the “lack of clarity that exists in the dynamic operating environment of today makes the very close term difficult to predict”.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Wmt | Walmart inc. | 96.83 | +0.95 |
+ 0.99% |
However, it remains confident that Walmart net sales will increase from 3.5% to 4.5% in the second quarter. However, Walmart has said that, since business discussions and related news are constantly changing, sometimes daily, “the range of operating income for the quarter is much wider”.
The company still expects annual net sales to increase by 3% to 4%.
