From Budget to Upscale: Walmart Attracts $100K+ Earners in Major Shift
By Jake Beardslee ·
November 19, 2024
Walmart is experiencing a surge in business, fueled by an unexpected demographic: customers earning over $100,000 per year.
The retail giant reported a 5.3% increase in US sales at stores open for at least a year last quarter, compared to the same period last year. Additionally, its profit surged by 8.2%. Hannah Mattix / USA TODAY NETWORK via Imagn Images
The company attributed its market share gains last quarter to "primarily upper-income households." Remarkably, households earning over $100,000 annually contributed to 75% of Walmart's market share growth. This success has prompted Walmart to raise its financial outlook, anticipating a strong holiday shopping season. Nathan J. Fish / USA TODAY NETWORK via Imagn Images
Traditionally known for attracting low and middle-income shoppers, Walmart has strategically expanded its appeal to higher-income households – a demographic historically dominated by Amazon. Daily News Staff Photo/Ken McGagh / USA TODAY NETWORK via Imagn Images
Walmart has achieved this by enhancing its grocery offerings, leveraging its scale to reduce prices, and refining its selection of clothing, electronics, home furnishings, and other merchandise. TOM HAWLEY/Monroe News / USA TODAY NETWORK via Imagn Images
The company has fortified its online presence to compete with Amazon, introducing services like online purchase with in-store pickup and Walmart+, a same-day grocery delivery membership program. Walmart's online sales in the US jumped by 22% last quarter. walmart.com
"As we grow our (online) assortment, we're able to appeal to more people and appeal to higher income levels," Walmart CEO Doug McMillon explained. "'Those that have more discretionary income and want to save time are liking what we're doing with both pickup and delivery.'" Walmart / Wikimedia
Walmart's strong performance contrasts with the struggles faced by many other retailers. Chains like Family Dollar, Walgreens, and Big Lots are closing numerous stores, with 2024 on track to see the highest number of store closures since 2020. Cara Owsley/The Enquirer / USA TODAY NETWORK via Imagn Images
This wave of closures is attributed to the end of the retail boom seen in 2021 and 2022, coupled with rising prices and interest rates that have impacted consumer spending. Pixabay
