Walmart To Cut Prices On Clothes Amid Changing Economic Climate

BENTONVILLE, AR — Walmart has plans to lower clothing prices amid shifting economic conditions, the company announced Monday.

“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars,” President and CEO Doug McMillon said in a news release.

The announcement comes on the heels of June’s 9.1 percent year-over-year inflation rate, which is the largest the country has seen in over 40 years.

“Food inflation is double digits and higher than at the end of Q1,” the news release said. “This is affecting customers’ ability to spend on general merchandise categories and requiring more markdowns to move through the inventory, particularly apparel.”

Target made a similar decision in June, when it announced that changing buying habits were leading the company to mark down some items but raise prices on others.

“Customers are choosing Walmart to save money during this inflationary period, and this is reflected in the company’s continued market share gains in grocery,” Walmart said in Monday’s news release.

Walmart also disclosed that its operating income for the year is expected to decline 11-13 percent, despite a projected yearly consolidated net sales growth of 4.5 percent. Its stock fell 8 percent in early trading Tuesday, according to CNN Business, which reported Target, Amazon and other retailers also saw stock drops in the wake of Walmart’s news.