Walmart Keeps Picking Up More High-Income Customers | Global News Avenue

Walmart continues to attract higher-income families.

Walmart (WMTChief Executive Douglas McMillon said Tuesday the company has taken market share away from food and department stores because it attracts many high-income earners. MacMillan estimates that Americans making more than $100,000 a year drive three-quarters of the share change.

Walmart takes note of the trend several quartersMcMillon told investors on Tuesday’s earnings call that this may be more than just a fad. “It makes me more optimistic that this is going to be a long-term thing,” McMillon said, according to a transcript of the call provided by AlphaSense.

Retailer Exceeded Wall Street expectationsreported a profit of $4.58 billion, or $0.57 per share, at the end of the last quarter. Executives revised their forecasts, Provide more optimistic forecasts For year-end numbers. Shares of Walmart hit an all-time high on Tuesday morning.

The amount of food sold at Walmart is growing at the fastest pace in four years, Chief Financial Officer John David Rainey said, citing growing sales of gluten-free options, grass-fed beef and organic produce. Especially in pickup and delivery orders.

Walmart said about 30% of delivery customers choose to pay a fee to receive their items faster. The brand believes in its affiliate program and growthDelivery services are particularly attractive For those making six figures.

“People who have more discretionary income and want to save time like what we’re doing,” McMillan said. “That’s one of the things that makes this moment different.”