Walmart CEO admits prices need to come down and reveals ‘stubborn’ factor behind store closures

WALMART’s chief executive said prices have yet to rise as “stubborn inflation” remains a key factor in the uncertainty for the retailer.

“We all need a cut in these prices,” Walmart CEO Doug McMillon told investors during the retailer’s earnings announcement Thursday morning.

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While the company’s sales rose nearly 8 percent in the first quarter, the business saw sales decline in apparel, home goods and electronics.

Shoppers still relied on the discounter for groceries, but consumer spending has been weak given current inflation rates.

Walmart recently made headlines by closing more than 20 stores as the company downsizes its underperforming locations. Inflation likely played a role in the subdued sales at these stores.

Still, the retailer has increased its market share among both higher-income and younger consumers, executives said.

“We’re seeing in these economic indicators that there is some consumer stress, but the resilience has surprised us,” said CFO John David Rainey CNBC.

“And I think part of that is probably because the balance sheets are much stronger even at this point than they were before the pandemic.”