The Walmart CEO Douglas McMillon is on the wires saying
- That he is working really hard on the costs
- Concerned about the inflation rate
- Seeks to limit price increases for basic foods
- It will take this quarter and next to work through inventory
- Supply chain snarls started to ease in February
- looking to drive volume by some price cuts on apparel
Recall after their earnings, both Walmart and Target spoke to the soaring costs and how they are impacting operations. At the time McMillon said
- Walmart was dealing with the rapidly climbing fuel prices, running $160 million higher than forecast, and with materially high food costs instigated by global shortages.
- Labor also continues to be stretched across the US . For Walmart, this was made worse by a miscalculation on its staffing requirements as the Omicron variant swept the US at the end of 2021
- McMillon said the company had "weeks of overstaffing" after bringing in workers to cover for those it expected to be on sick leave, but almost all returned ahead of schedule in February, increasing labor costs alongside the knock-on from last year's wage rise.
- Said that customers are cutting back on premium brands