Walmart customers agree with the multinational’s big boss by avoiding the clothing aisle in the store to make sure they have enough money to buy groceries and gas.
• Also read: Canadians are worried about the effects of inflation
“Rising food and fuel inflation are having an impact on customer spending,” Walmart CEO Doug McMillon summarized Monday.
Inflation is hurting the company to the point where it now expects a 10% drop in operating profit.
Stock down more than 10%
Basically, we spend more on essential products and avoid departments like apparel, which forces Walmart to sometimes lower the price of its stock in order to sell it.
Yesterday, the stock’s Walmart stock tumbled $7.64, down 10.09%, in the stock market to digest downwardly revised expectations.
At the same time, another giant, Unilever, said it was hit by runaway inflation, which caused its prices to rise by as much as 11% in a year.
Easy even at Walmart
At Walmart on Roland-Therrien Boulevard in Longueuil yesterday, Claude Lamothe, 84, had plenty to say about rising prices, urging him to visit Walmart and Maxi to maximize his spending power.
“The meat is particularly expensive. We need iron to live. You have to buy it right away. We have no choice,” the retired former security guard sighed.
At least, he said, he doesn’t have a car to drink from. No salty gas bills for those who prefer to use their scooter to survey the bike paths in their neighborhood.
“It’s true that you have to be careful and take it easy,” the man admitted when asked if he was cutting back on his clothing purchases.
Photo Francis Halin
Ronaldo Portales. construction worker
For Ronualdo Portales, 30, a construction worker met at the entrance, the inflationary overheating made him reconsider his diet.
“If you eat less, you have a lot more money to spend on gas and clothes,” explains the man, who says he eats his fill without exaggerating.
In the apparel department, Alexandre Mazela, a 36-year-old beneficiary, had many “question marks” in his mind about the price increases, which were reflected in his wallet.
“You have to cut back on some clothes purchases to save money, otherwise the month ends with too many bills,” the man concluded.