Walmart Investor Presentation: Inflation Here to Stay

Sep 19, 2023 | Corporate Insights, No Bull Economics

While general merchandise prices are lower y/y, they remain elevated compared to 2 years ago. As Walmart does not believe general merchandise and food (dry grocery) & consumable prices are ever going to completely disinflate, management suggests the need for a country-wide wage increase rebalancing.


  • While employment, wage increases, and pockets of disinflation have helped consumers, there is some behavioral change for those under pressure. In any case, Walmart is well positioned to serve value-conscious consumers who are using more excess income to buy general merchandise.
  • While consumers are purchasing smaller pack sizes & moving to private brands, Walmart has been able to attract a wide range of income cohorts & reported strong back-to-school results and good momentum for a strong holiday season.


  • Walmart U.S. is well positioned given: its price competitiveness; investments in e-commerce & tech; and high wages paid to its staff.
  • Access benefits from curbside pickup & various forms of delivery.
  • The company seeks to expand its basket by pursuing growth opportunities in apparel & home.

Margin Expansion

  • Inventory management & supply-chain productivity allow the company to keep prices low while also driving faster operating income growth relative to sales.
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