3 Ways Walmart Is Helping You Fight Inflation

As inflation continues to affect millions of Americans, certain establishments make more effort than others to maintain their customers. While a luxury boutique could be less concerned about the impact when an already expensive item costs more, places like value stores rely on affordability. Once that incentive is gone, customers on strict budgets will begin to look elsewhere. Walmart is one such establishment that has long been known for discounted products. The company has had such a substantial impact in this regard that there is a Walmart Effect, based on the impact the company has when it opens in a new area, resulting in positive and negative consequences, as explained by Investopedia. Smaller businesses can be damaged by being forced to lower their prices beyond a sustainable level, once the new Walmart provides consumers with a new value standard they haven’t experienced yet in their local area.

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Because Walmart is an icon for curbing inflation, it seems natural that the company would want to hold onto this dynamic. In a 2024 survey, over 1,000 Americans were asked what grocery store they “feel has lowered prices the most to combat inflation over the last year?” More than a third (34.15%) of responders choose Walmart. The particular spotlight on Walmart must mean that the company is doing something different than other major chains.

1. Walmart demonstrates the idea that cutting their prices doesn’t need to hurt the overall business profitability if it brings in that much more traffic. Financial analysts note that Walmart’s prices average “around 25% lower than traditional supermarkets,” according to CNN . This comes with data indicating that many shoppers currently feel dissatisfied with grocery costs. Walmart capitalized on new consumers looking for a new, less expensive place to shop. Moreover, “while low and middle-income shoppers have traditionally formed the core of Walmart’s customer base,” recently, upper-income shoppers have been responsible for a lot of their revenue. This makes sense when considering how inflation has risen in a post-pandemic world – even consumers who could comfortably afford to shop at traditional supermarkets have gone the route of Walmart.
2. Walmart’s CEO, Dough McMillon, spoke in an interview about how the company strives to maintain their prices for their own-brand products, according to Forbes . Taking this a step further, they also seek to have other brands lower their prices. This benefits those interested in other merchandise brands. They may have been used to purchasing a specific product, only for it to have become too expensive at their store. They then switch to Walmart, where they find affordable products on top of the ones they are accustomed to.
3. Another way that Walmart helps consumers fight inflation is through the loyalty system. According to Business Model Analyst , Walmart Rewards and the Walmart+ subscription service are two programs that provide additional benefits to repeat customers. While this is particularly useful for those already used to shopping at Walmart, new shoppers can take advantage of these perks as well. Walmart also has a price-matching policy, allowing them to maintain a competitive edge in the market. This rewards budget-conscious shoppers and means there is one less reason for shoppers to shop somewhere else. Moreover, Walmart has low prices daily, which benefits consumers much more than the fleeting deals that are commonly seen in other establishments.

This article originally appeared on GOBankingRates.com : 3 Ways Walmart Is Helping You Fight Inflation