Walmart has just issued this urgent warning
The retailer rings the alarm of this problem which affects buyers around the world.
Walmart is a daily stop For millions of buyers who seek to take advantage of the low prices of the retailer. But problems of upward supply chain of production costs, the company is often faced with challenges to prevent customers from having to break the bank during purchases. Now, the large -scale retailer sounds the alarm on a widespread problem that will affect buyers around the world - and it is not limited to Walmart. Read more to find out why the company is concerned.
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Inflation had a major effect on large and small retailers.
Consumer inflation isReply to retailers, because it reached a maximum of 40 years of 8.3% in April, according to Fox Business. As a result, Walmart wasAmong a number of retailers Last week, which declared a significant decrease in the benefits of its first quarters. The company saw actions decrease by 11% on May 17, which makes it the worst day of the retailer in 35 years, said Fox Business. Walmart's shares fell again on May 18, down 7%.Edward Maya, a senior market analysts for Oanda, said that "consumer strength will be tested" because Walmart's report indicates that "the increase in pressures does not release".
Walmart says that buyers' habits change depending on the cost increase.
Inflation is widespread, but Walmart is most concerned about the impact on food, issuing an alarming warning for customers around the world. "On the food side, we see two -digit inflation and I fear that inflation will continue to increase", CEO of WalmartDoug McMillonSaid, according to Fox Business.AE0FCC31AE342FD3A1346EBB1F342FCB
John Furner, the chief executive of Walmart U.S., said that the company saw an increase in the change of inflationCustomer trends in categories Like "Deli, lunch meat, bacon [and] dairy products", with buyers who are now exchanging in these categories of "essential" foods. "In proteins and dairy products, we see some passing brands to private brands. And we see gallons of milk to half-milk," said McMillon.
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Milk prices have climbed considerably.
In terms of rising food prices, the dairy sector is the hardest. According to the Bureau of Labor Statistics, the average price ofA gallon of milk In the United States is now more than $ 4 - the highest it has ever been, and against $ 3.45 last April and $ 3.27 in April 2020. Data from the US Department of Agriculture ( USDA) show that in some cities - like Kansas City, Missouri; Philadelphia, Pennsylvania; and Pittsburgh, Pennsylvania - The average price of milk is alreadyMore than $ 5 per gallon, byNowsweek.
According to the media, the increase in milk prices is a combination of pandemic supply chain problems, higher costs for farmers in terms of food and transport, and a decrease in the number of cows and Farms. USDA data has shown that the number of milk cows on farms in the United States is now 9.4 million, or 98,000 less cows than in April 2021.
Walmart says it works to reduce prices.
Walmart knows that low prices are important for its customers. "We must do more to maintain low costs, and where we see the transition from brands to private brands, we will continue to look at this for a group of customers, but we must all work harder to maintain low prices for the American consumer "Said Furner.
More specifically, Walmart wants "customers to have lower prices" even if food inflation continues to increase, according to McMillon. "Not all [our] customers cannot afford to absorb this," he said. "This is where they need our help."
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