Walmart Reports Rise in Sales

As prices on many goods have increased in recent months, even the most sophisticated retailers like Walmart have struggled to navigate the changes inflation has caused in consumer behavior.

Walmart showed on Tuesday that it is continuing to grapple with the issue, saying in its earnings report that, while its U.S. comparable sales increased 6.5 percent from the same point last year, its operating income dropped 6.8 percent.

The boost in sales for the quarter that ended July 31 was driven by shoppers’ buying necessities like groceries. That’s a sign that people are continuing to concentrate their spending on essential items — which often have lower profit margins — while curtailing spending in categories like electronics and apparel that they deem more discretionary. “We expect inflation to continue to influence the choices families make, and we’re adjusting to that reality,” Doug McMillon, Walmart’s chief executive, said on Tuesday during a call with analysts.

Walmart…

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This article was written by Jordyn Holman and originally published on www.nytimes.com