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Tag Archives: Walmart

Upscale Consumers Are Shopping at Walmart

10 Tuesday Jan 2023

Posted by grewallevymarketingnews in Chapter 06: Consumer Behavior

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Inflation, Upscale, Walmart

It’s been a rough economic year for many consumers, which has translated into a notably profitable economic year for the discount giant Walmart. The mega-retailer reported an 8.2 percent gain over last year’s sales for the third quarter, with shoppers both spending more overall and buying more stuff.

It may not be a surprise that a company known for great prices and deep discounts would do well in a time of record inflation. What’s notable is who is buying from Walmart now. About 75 percent of the retailer’s increase in sales is from shoppers making $100,000 or more per year.

With food inflation up 12.4 percent over a year ago, these well-off shoppers largely spend their dollars on groceries. Walmart’s grocery sales saw “mid-teens growth,” Walmart said in an earnings call, continuing a trend that began earlier in the year. “During a period of time when people are more sensitive to price, it makes sense that they would increase the amount of their wallet that would be coming to Walmart because of value,” said Walmart CEO Doug McMillon. “Regardless of income levels, families are more price-conscious now.”

Shoppers are “trading down” to save money, according to Walmart—increasing their spending on the store’s private-label items, which cost less than brand name alternatives. Consumers also bought less expensive proteins, like beans, peanut butter, and hot dogs, over more expensive options, along with cheaper versions of baking goods, baby food, and dog food.

The trick now is holding onto these new customers, something Walmart thinks it can do. “If we can stand tall during this period of time, we think they’ll keep coming back to us because we do have quality, we do have value, and we’ve created a lot more ways for them to save time in the store and with pickup and delivery,” McMillon said. “So, that’s what we’re out to do.”

Discussion Questions:

  1. Why are high-income shoppers buying groceries at Walmart?
  2. What can Walmart do to hold onto these shoppers once financial strains lessen?
  3. How could Walmart translate increased grocery sales among high-income shoppers to more interest in other items, like apparel and electronics?

Sources: George Anderson, “Can Walmart Hold onto the New, Wealthier Customers It Is Picking Up?” RetailWire, November 16, 2022; Ines Ferré, “Walmart: $100K+ Income Households ‘Shopping with Us More Often’,” Yahoo, November 15, 2022; “Walmart Inc. (WMT) Q3 2023 Earnings Call Transcript,” fool.com, November 15, 2022; Avery Hartmans, “People Who Make More than $100,000 a Year Are Grocery Shopping at Walmart, and It’s Giving the Chain a Major Edge over Its Rivals,” Insider, November 20, 2022; Lauren Debter, “Walmart Attracting Wealthier Customers Looking for Cheaper Groceries as Inflation Rages,” Forbes, November 15, 2022

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Walmart Wants to See You in Your Undies, so You Can See Yourself in Its Clothes

13 Thursday Oct 2022

Posted by grewallevymarketingnews in Chapter 05: Analyzing the Marketing Environment

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Marketing Environment, Walmart

Walmart has too much apparel on its hands and in its warehouses. In the face of inflation, consumers have cut …

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Walmart and Target Are Among the Retailers Slashing Prices

20 Tuesday Sep 2022

Posted by grewallevymarketingnews in Chapter 15: Strategic Pricing Concepts

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Strategic Pricing, Walmart

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Shoppers, get your credit cards ready. Some, but not all, of America’s largest retailers have too much inventory just lingering …

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Marketing Tidbit: How Walmart+ uses discounts to promote subscriptions

23 Monday May 2022

Posted by grewallevymarketingnews in Marketing Tidbits

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Marketing Tidbit, Walmart, Walmart+

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In what it widely assumed to be its response to Amazon Prime, Walmart introduced its Walmart+ subscription in 2020. The …

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Marketing Tidbit: Walmart Expands its Advertising to Self-Checkout Scanners

30 Tuesday Mar 2021

Posted by grewallevymarketingnews in Marketing Tidbits

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advertising, Marketing Tidbit, self checkout, Walmart

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Shoppers swiping their purchases along the self-checkout scanner at Walmart soon will encounter on-screen advertisements, alongside their tally. The goal, …

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Pets Make People’s Lives Better, and Walmart Is Ready to Make Pets’ Lives Better for Them

05 Friday Feb 2021

Posted by grewallevymarketingnews in Chapter 13: Services: The Intangible Product, Chapter 17: Retailing and Multichannel Marketing

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Pets, Retailing, Services Marketing, Walmart

In addition to dry and canned food, a leash, and some toys, pet owners can now meet more of their …

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Especially Thankful for a Job This Year: Walmart Will Close Stores on Thanksgiving for the First Time in Decades

26 Wednesday Aug 2020

Posted by grewallevymarketingnews in Chapter 04: Conscious Marketing, Corporate Social Responsibility, and Ethics, Chapter 17: Retailing and Multichannel Marketing

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Conscious Marketing, Retailing, Walmart

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Retailers with physical channels need to make sales in stores, but to do so, they need employees. One factor cannot …

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Rather than Just Advertising, Retailers Seek to Facilitate Others’ Advertising Efforts with Their Market Analytics

15 Wednesday May 2019

Posted by Grewal Levy Marketing in Chapter 17: Retailing and Multichannel Marketing

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advertising online, technology, Walmart

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A key distinction between brick-and-mortar and online retailers is the access that the latter have to vast amounts of consumer …

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International Women’s Day as Inspiration for Marketing Messages

02 Thursday May 2019

Posted by Grewal Levy Marketing in Chapter 05: Analyzing the Marketing Environment, Chapter 08: Global Marketing

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Holiday Marketing, International Womans Day, Walmart

When we mention “holiday marketing,” the first holiday that comes to mind might not be International Women’s Day. But around …

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Competition Within the Family: How Little Sibling Sam’s Club Is Trying to Get Out from the Shadow of Big Sibling Walmart

15 Thursday Oct 2015

Posted by Grewal Levy Marketing in Chapter 09: Segmentation, Targeting and Positioning

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Sam's Club, segmentation, Walmart

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When it first entered the scene, Sam’s Club had a specific and focused target market: small businesses that wanted to …

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Archived Articles by Chapter

  • Chapter 01: Overview of Marketing (76)
  • Chapter 02: Developing Marketing Strategies (135)
  • Chapter 03: Social and Mobile Marketing (157)
  • Chapter 04: Conscious Marketing, Corporate Social Responsibility, and Ethics (155)
  • Chapter 05: Analyzing the Marketing Environment (220)
  • Chapter 06: Consumer Behavior (178)
  • Chapter 07: Business-to-Business Marketing (84)
  • Chapter 08: Global Marketing (116)
  • Chapter 09: Segmentation, Targeting and Positioning (147)
  • Chapter 10: Marketing Research (98)
  • Chapter 11: Product Branding and Packaging Decisions (203)
  • Chapter 12: Developing New Products (178)
  • Chapter 13: Services: The Intangible Product (144)
  • Chapter 14: Pricing Concepts for Establishing Value (97)
  • Chapter 15: Strategic Pricing Concepts (92)
  • Chapter 16: Supply Chain Management (110)
  • Chapter 17: Retailing and Multichannel Marketing (202)
  • Chapter 18: Integrated Marketing Communications (162)
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  • Chapter 20: Personal Selling and Sales Management (55)
  • Marketing Tidbits (32)
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