Walmart’s Strength in a Squeezed Economy: Why Shoppers Across America Are Leaning In

A Quarter That Underscores How Much Value Matters

Walmart’s fiscal third quarter showed that consumers continue to prioritize retailers that help them stretch their budgets. Comparable sales in the United States rose 4.5 percent, ahead of expectations, supported by higher traffic and a meaningful increase in average ticket. Revenue reached about 179.5 billion dollars, beating analyst estimates and reinforcing Walmart’s momentum at a time when several major retailers reported cautious outlooks.

Executives said spending patterns remain consistent with recent months. Shoppers are hunting for deals, making selective choices and favoring retailers that combine low prices with dependable service. These habits have brought new shoppers to Walmart, particularly households with higher incomes that became more sensitive to rising costs over the past few years.

Walmart raised its full-year guidance for the second quarter in a row. It now expects net sales to grow between 4.8 and 5.1 percent and adjusted earnings per share between 2.58 and 2.63 dollars.

A Leadership Transition Backed by Strong Results

This quarter was the first since Walmart announced that John Furner, who currently leads Walmart U.S., will become CEO on February 1. Doug McMillon will retire after eleven years in the role, a period defined by major investments in supply chain, wages, automation, store remodels and digital channels.

Furner inherits a company that is performing well and gaining share. Walmart is attracting customers across income groups, expanding its online reach and improving delivery speed. The timing positions the new leadership team to build on a strong foundation.

Why Walmart Is Pulling Ahead

Higher-income shoppers are increasingly turning to Walmart

Walmart has always drawn budget-conscious customers, but a notable trend has emerged. More households earning over 100,000 dollars per year are choosing Walmart for groceries, essentials and convenience. These customers have responded to remodeled stores, better assortments and faster delivery options.

CFO John David Rainey told CNBC that gains among higher-income customers are now even more pronounced. Many shoppers have adopted Walmart+ or are using store-fulfilled online delivery as part of regular routines.

Faster delivery is changing how customers shop

Walmart can now deliver to roughly 95 percent of U.S. households from stores in less than three hours. Customers choose one-hour and three-hour delivery windows for about a third of online orders. Revenue tied to faster delivery grew more than 70 percent year over year.

Even lower-income households use expedited delivery. Walmart saw a temporary dip during the government shutdown when SNAP benefits were paused, but spending rebounded once benefits resumed.

Continued strength in e-commerce and marketplace

Global e-commerce grew 27 percent in the quarter. In the United States, sales grew 28 percent, driven by delivery from stores, advertising gains and growth in the third-party marketplace. Advertising rose 53 percent globally, boosted in part by Vizio. Walmart Connect grew 33 percent in the United States as more brands invested in reaching Walmart’s expanding digital audience.

Walmart is also exploring acquisitions to support marketplace safety and reliability, including talks to acquire R&A Data, a company that specializes in detecting scams and inauthentic products.

Navigating Tariffs and Rising Costs

Tariffs and global cost pressures continue to influence retail pricing. Walmart said it raised prices on some imported items to offset higher costs because about one third of its merchandise in the United States comes from abroad. Rainey noted that the impact of tariffs is real, but Walmart’s scale allows it to absorb enough cost to shield customers from the full effect.

Despite these challenges, Walmart maintains a clear pricing advantage. Analysts often look to Walmart as a measure of consumer health because it reflects spending patterns across both discretionary and essential categories.

A Competitive Environment That Favors Walmart

Walmart’s performance stands in contrast to recent results from Target, Home Depot and Lowe’s. Each of those retailers reduced full-year profit forecasts and described consumers who are delaying major purchases and focusing more on deals.

TJX, the parent of T.J. Maxx and Marshalls, reported strong momentum as well. Their gains highlight the same larger trend. Value-focused retailers are benefiting as shoppers stretch their dollars. Walmart, however, combines value with convenience and broad assortment, which gives it a unique position.

Grocery strength remains one of Walmart’s defining advantages. Frequent trips for fresh food and essentials create opportunities for cross-category purchases. Improved offerings in apparel and home goods have helped narrow the gap with mid-tier competitors and encourage shoppers to consolidate trips.

Looking Toward the Holiday Season

Walmart enters the holidays with confidence. Rainey said the company is optimistic about the season and is prepared with competitive prices across categories. Customer visits are rising, online growth is strong and the retailer is holding share gains among value-driven shoppers and convenience-driven shoppers alike.

As more households watch every dollar, Walmart’s combination of low prices, broad assortment and fast fulfillment makes it a natural destination for both everyday needs and holiday purchases.

What This Moment Signals

Walmart’s most recent quarter shows how central the retailer has become to everyday life in an unsettled economy. As families look for ways to manage rising costs without sacrificing convenience or quality, Walmart has positioned itself as a place where both can be found. The company’s scale, digital capabilities and focus on value are aligning with what shoppers need most right now.

For suppliers and partners, the message is straightforward. The shoppers arriving at Walmart today are not only looking for low prices. They want reliable availability, clear value and easy access across store aisles and online channels. Walmart’s momentum is strongest in the areas where those needs are met. Teams that understand this shift and support it directly will be best equipped to grow alongside Walmart in the months ahead.

Winning With Walmart

Winning With Walmart is an independent platform for suppliers, sellers, solution providers, and industry experts.

Articles are developed by staff editors, contributing experts, and trusted partners.

Some are researched and drafted with the assistance of AI tools and are reviewed, fact-checked, and edited by Winning With Walmart editors before publication.

Editorial judgment, sourcing decisions, and final approval rest with the publication's human editors in every case.

We are committed to accuracy and fairness. If you believe this article contains an error, we welcome your feedback.