Walmart's Sales Growth Slows Amid Soaring Gas Prices

Walmart's sales growth at US stores slowed significantly in the three months ending July 31, rising only 2.6% compared to 4.6% a year ago. This is the slowest growth since February through April of 2020. The nation's largest retailer attributed this decline to higher gas prices cutting into Americans' spending power.

Walmart's net income was boosted by strong online sales and a massive $2.9 billion tariff refund, the largest yet reported. CFO John David Rainey stated that there is 'arguably a softer consumer environment than in February' before gas prices spiked, adding that when gas prices exceed $4 a gallon, consumers make different choices.

The company plans to use the $2.9 billion tariff refund to invest in price investments, or price cuts, for consumers to help stimulate spending. This move comes as other retailers, including Target and Home Depot, also receive large refunds from past tariff payments.