Walmart customers prove the big boss of the multinational right by shunning the clothing aisle in the store to be sure they have enough money to buy food and gas.
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“Rising levels of food and fuel inflation are affecting how customers spend,” Walmart CEO Doug McMillon summed up Monday.
For the company, inflation is hurting to the point where it now anticipates a 10% drop in operating profit.
Title down more than 10%
Basically, we spend more on essential products and we shun departments such as clothing, which forces Walmart to sometimes lower the prices of its stocks to manage to sell them.
Yesterday, Walmart stock plummeted $7.64, 10.09%, on the stock market to digest lowered expectations.
At the same time, another giant, Unilever, also said it was hit by runaway inflation, which caused its prices to rise by up to 11% in one year.
Easy even at Walmart
At Walmart on Roland-Therrien Boulevard in Longueuil yesterday, Claude Lamothe, 84, had a lot to say about soaring prices, which pushes him to frequent Walmart and Maxi to maximize his purchasing power.
“It is the meat above all that is expensive. We need iron to live. You have to buy it the same. We have no choice,” sighed the retired former security officer.
At least, he said, he doesn’t have a car to drink. No hefty gas bill for those who rather ride the bike paths in their neighborhood on a scooter.
“It’s true that you have to be careful, and take it easy,” conceded the man when asked if he is cutting back on his clothing purchases.
To eat less
For Ronualdo Portales, 30, a construction worker met at the entrance, the inflationary overheating led him to review his diet.
“If you eat less, you have a lot more money to spend on gas and clothes,” explained the man who says he eats his fill, without excess.
In the clothing department, Alexandre Mazela, a 36-year-old beneficiary attendant, had many “question marks” in mind about the price increases, which are cascading into his wallet.
“You have to reduce some clothing purchases to save money, otherwise you’ll end the month with too many bills,” the man concluded.
