Walmart CEO sounds alarm on a big problem for customers

The growing issue is getting noticeable.

Mar 9, 2025 - 13:43

Walmart CEO sounds alarm on a big problem for customers

As much as it's a difficult time for retailers in the United States, it's even more challenging to be a consumer.

Retailers have been struggling with a great consolidation, where smaller mom and pop operations are getting eaten up by larger corporate incumbents.

It's difficult to operate profitably in an environment with high interest rates and increasingly skittish consumers who eye every penny and aren't willing to push their budgets.

But it's even more difficult to be a consumer.

Prices are rising for just about everything; the most recent CPI found that the cost of foods and services rose by 0.5% for January after rising 0.4% for December.

This puts the annual rate of inflation at 3%, which is higher than most analysts anticipated.

Walmart food and grocery section, which offers value to many cost-conscious customers.
Walmart

Some goods are more expensive than others

One key good that's been rising in price at a high level has been food.

It's probably something you've noticed in daily life as it is.

The numbers are eye-popping, though.

"The index for food at home rose 1.9 percent over the last 12 months. The meats, poultry, fish, and eggs index rose 6.1 percent over the last 12 months as the eggs index increased 53.0 percent," the CPI found.

More Walmart:

"The index for nonalcoholic beverages increased 2.2 percent over the same period, while the index for other food at home rose 0.8 percent and the index for dairy and related products increased 1.2 percent. The cereals and bakery products index increased 0.4 percent over the year and the fruits and vegetables index rose 0.3 percent over the same period."

Walmart CEO sounds the alarm

Many consumers have begun to start shopping at lower-priced national retailers in an attempt to cut costs.

One such retailer is Walmart (WMT) , which is already the number one grocer in the United States.

The retailer has been taking great pains to cut costs, announcing 2024 that it would work to reduce the cost of many items — including food — back to pre inflation levels.

However, Walmart CEO Doug McMillon says that sometimes those efforts are just not enough to ease the difficulties entirely.

“You can see that the money runs out before the month is gone, you can see that people are buying smaller pack sizes at the end of the month," McMillon said at the Economic Club of Chicago.

He added that he feels the stress of consumers across all socioeconomic levels, particularly for folks who are more exposed to price hikes.

“There are lots of income levels in this country — if you’re at the lower end of that scale, you are feeling more frustration and pain because of higher food prices,” he said. “They’ve persisted for years now, and you’re just tired of it. And you want it to get better.”