Walmart's strong first quarter driven by consumers seeking bargains with inflation still an issue

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Walmart is reporting another quarter of strong results as its low prices pull in shoppers scouring for discounts with inflation stubbornly high

NEW YORK — Walmart Inc. reported another quarter of strong results Thursday as its low prices pull in shoppers scouring for discounts with inflation stubbornly high.

The nation's largest retailer, based in Bentonville, Arkansas, also offered an upbeat outlook. Share rose more than 6% in early afternoon trading.

Walmart, based in Bentonville, Arkansas, is among the first major U.S. retailers to report quarterly results that could shed more insight into how consumers are feeling, particularly after the government reported an unexpected flattening of spending between March and April.

Americans have remained largely resilient in the face of inflation, bolstered by a strong labor market and steady wages. But there are signs that shoppers are pulling back under the growing weight of higher prices and the higher costs of carrying debt. While the inflation rate has ebbed prices remain elevated for some basic items like packaged goods and rents remain high, sapping the spending power of millions of people.

Walmart said its customers are spending more on necessities while cutting back on discretionary goods like home furnishings and electronics. The retailer is also noticing that shoppers are looking for food storage items as they focus on eating at home to save money. And they're shifting more to private brands over national brands, which tend to be more expensive.

To cater to price sensitive shoppers, the retailer is coming out with more price rollbacks — temporary price cuts — and that is keeping store traffic and sales strong.

“Our combination of everyday low prices plus a large