Walmart CFO tells Fox Business why it continues to find high-income shoppers.
Today’s Walmart is a far cry from what customers have seen historically, according to Walmart CFO John David Rainey. It’s not dangerous, either.
Rainey, who joined the company in 2022 after holding key positions at PayPal and United Airlines, told FOX Business that the country’s largest retailer is “developing” its brand and improving the look of its stores, which are key factors in its appeal to high-income shoppers. .
“The Walmart of today is very different than the Walmart of a few years ago,” Rainey said, adding that it has been making changes that “appeal to a lot more people than we have historically.”
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Over the past few years, Walmart has been reporting an increase in high-income families. In its most recent financial statement, the company announced that it continued to “gain market share in the US, both in grocery and general merchandise,” with households earning more than $100,000 accounting for 75% of its share gains.
Walmart’s modern clothing section (Walmart)
The company reported that its third quarter revenue rose more than 5% from the previous quarter to $169.6 billion, beating the Wall Street estimate of $167.72 billion. Adjusted earnings per share also beat Wall Street estimates by 5 cents. The company’s success has impressed Wall Street, with shares of the company rising more than 60% year to date.
Rainey credits part of the company’s success in attracting more consumers, including affluent customers, to expanding its product range, particularly in its e-commerce business. The addition of high-end products, such as Apple products or Bose headphones, “wanted by wealthy customers,” are some examples of this strategy, he noted.
Rainey acknowledged that the company can’t carry all the brands that “will appeal to a broad representation of consumers in our stores.” This is where he said they are leading in its online market. The company reported that it has more than 700 million items in its marketplace.
But even with this expansion of its traditional range, Rainey reiterated that the company is “not alienating our traditional customer base.”
Walmart’s modern grocery department (Walmart)
Another focus has been on expanding its variety, bringing in more varieties that appeal to “everyone.” But as the company adds more products, including high-end items, other suppliers take notice and want to join.
“If you’re a supplier or a retailer, you really want to sell your product where the people are, where the eyeballs are coming. And so that’s really helping us now,” he said.
In addition to improving its assortment, Rainey said the company has increased investment in its store experience.
The company has been building new state-of-the-art stores and renovating hundreds of others.
In the past three years, it has remodeled about 700 stores each year on average. For the next fiscal year, Rainey said they will do some remodeling.
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“When you walk into one of these remodeled stores, it’s a very different experience than what you’ve historically imagined,” Rainey said.
The newly built and renovated stores boast the company’s new store concept with improved layouts, a larger product selection and new technology to help connect and support customers. The stores have updated signage, paint, shopping carts and a new checkout design.
There are also interactive displays in certain areas of the stores with large merchandise on display, so customers can get a better look at the products.
In the US, the company operates more than 4,600 stores and employs approximately 1.6 million associates. That doesn’t include the 599 Sam’s Club membership warehouses that also operate in the US
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