From Yahoo Finance, May 18:
Walmart (WMT) says shoppers' wallets are getting squeezed among stubbornly high food prices.
"If you look at the headline numbers, sure inflation is coming down because we're lapping higher prices last year. But if you're a consumer going to buy a basket of groceries, prices are still high," John Rainey, CFO of Walmart told Yahoo Finance Live (video above) following the retailer's latest quarterly results.
"Pocketbooks are pinched, and that's causing customers to be more discretionary with these larger ticket items, like electronics, TVs, home and apparel," he added.
Rainey points out food prices on a two year basis is up 20%.
"I think the persistent inflation in dry grocery and consumables is the biggest issue," he told analysts during the company's earnings call.
Walmart is seeing a continuation of trends in previous quarters, as more higher income and younger shoppers are shopping at the low cost retailer. The company has been steadily gaining market share in its grocery segment as consumers aim to stretch their dollars....
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