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Walmart CEO Doug McMillon on Food Inflation

Walmart CEO Doug McMillon on Food Inflation
Walmart CEO Doug McMillon

Overview:

The Executives at Walmart provide their predictions on the food inflation in Walmart Brand. They said that the Company is in deep trouble as they were analyzing the fourth quarter earnings of the year. He further said that I am generally speaking that food inflation is the biggest stubborn of the categories. The US Walmart CEO John Furner talk with the brand investors and analysts on the call. He further added we are in mid-double digits and quarters 3 and 4 have come yet. For the last two months, there is a decrease in inflation I guess but this is the biggest inflation in food at this point. He noted that the price in other businesses will come down more.

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Inflation impact on Grocery Prices:

Inflation impact on Grocery Prices:

The consumer price index data is exposed in the mid of February. According to the data, there is an 11.3% increase jump on the prices of groceries in a year and a 0.4% increase per month. Walmart Inc. CEO Doug McMillon said that the time of inflation is no more with us we have to face this low time of inflation.

It will be difficult and you have to hear the inflation number that will sound lower. But you have to remember that this is a two-year stack. He further said “if the inflation in consumables and dry products of grocery is just three or five this is on top of 15. That will be a problem for the consumer and there is pressure on their wallet.

Walmart is now closing three Tech Hubs and asking employees to relocate:

The Inc. CEO said that he notice in Eggs there is a 200% inflation in January month which decreased and now is 50%. If we talk about the milk it is lower than a year ago. On the other side, beef is less in terms of pricing. The production cost and the Bird Flu is the most important factor of the inflation in egg prices.  Walmart US thought that the dry grocery and used products will make pressure on the customer that they will feel and their impact will regarding on us over the year.

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If we talk about the overall revenue of the company then the final quarter of 2023 will come at $164 billion which has a markup of 7.3% increase in a year. The consolidated net income of Walmart is $6.28 billion and have attributable to it. A spread of $3.56 billion is reported in the same year.

Walmart Company Caution 2023 Outlook:

The company cautions of the 2023 outlook is come for the year which is something CFO John David Rainey said they have given the endurance of high prices and the potential of more macro pressures. In addition, he said the position of the brand is well in the market.

At one point McMillon said that the inventory of the brand will switch to another location if the customer of Walmart more something from us. If the economy of the world is strong then the customers have more money but if the situation is tough they will demand value from us. In today’s inflation, we will see what happened in the next few days.

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Conclusion:

The most popular brand in US Walmart is facing inflation in their consumable and dry grocery products. The CFO said that the position of the Company is pretty good and the customer is loyal to the Company. We are in double digits and quarters 3 and 4 will come yet.

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