Walmart customers don’t expect rapid economic recovery, senior executive says

Walmart’s chief customer officer Janey Whiteside said on Tuesday that many of her shoppers don’t expect the economy to rebound quickly after the pandemic.

Almost half of customers polled in November told Walmart they were concerned about the current health of the economy, she told the National Retail Federation virtual conference. She said 40% said they did not expect “any kind of quick recovery.”

“Our main customer Walmart is absolutely not immune to the economic downturn, in fact may even be disproportionately affected,” she said, noting that the pandemic has forked society by hitting certain industries like the hotel industry and not others.

Walmart’s sales and profits increased during the pandemic, as customers turned to its more than 4,700 stores in the United States and its website for groceries, hair coloring, puzzles and more. Its same-store sales increased 6.4% and its e-commerce sales in the United States climbed 79% year-over-year in the fiscal third quarter ended Oct. 31. The company has yet to release its fourth quarter results, which include the holiday shopping seasons.

Still, Whiteside said the company was realizing that customers were feeling cash strapped as they tried to put food on the table and juggle other expenses, such as school supplies for their children. children. She said that “galvanizing around this group of customers who need us more than ever is really the fuel that makes Walmart work.”

“We know they keep looking for ways to save money on basic items, as you look to switch from a national brand to a private label, look for small packages, choose deals specials when available, ”she told me. “We also know that they continue to make sure they don’t have to sacrifice experiences for their families, so they’re looking to find balance in their wallet.”

On Monday, Walmart announced the creation of a fintech start-up with venture capital firm Ribbit Capital. He didn’t share what services he might launch, but said they would be affordable. Walmart already offers some financial products like prepaid debit cards for customers with poor credit history or no relationship with a bank.

Also focused on affordability is Walmart’s plan to open health clinics. Clinics offer lower prices that are quoted in advance and can be paid out of pocket, such as $ 30 for an annual check-up or $ 45 for a counseling session.

“In these times, when everyone has so much going on their heads, we also know that saving time and lifting that cognitive load for people is also paramount,” she said.