Opinion: Lessons From Walmart’s and Target's Earnings Misfire

"Adjusting to inflation and learning to achieve 'rapid retrenchment' requires new tools and a shift in strategy," says Anis Hadj-Taieb of DemandTec by Acoustic.


Dollar Tree Sees Net Sales Increase 6.5% in ‘Solid Start to the Year’

The Chesapeake, Va.-based retailer also records a 19.2% lift in gross profit for first-quarter fiscal 2022.

For Dollar General's core customer, "As long as she’s gainfully employed, that makes the biggest difference in giving her the confidence to spend," company CEO Todd Vasos says.

"Our business model remains more relevant than ever in the current inflationary environment," President and CEO Bob Eddy said.

Echoing Walmart, Target said that higher transportation costs and excess inventory squeezed profits in the first quarter.

The two retail giants expected to see elevated supply-chain costs, more macroeconomic uncertainty and an impact from lapping stimulus spending—but not to this extent.

Walmart customers shifted their spending away from general merchandise to grocery—and in some cases, from national brands to private labels—to help manage rising food prices in the first quarter.

U.S. comp sales growth came in at a better-than-expected 3%, but the Bentonville, Ark.-based retailer lowered its full-year EPS guidance as 2022's "unusual environment" continues to pressure margins.

"Traffic trends in the second quarter are strong as we believe consumers are increasingly looking to stretch their shopping dollar in light of inflation," says CEO Eric Lindberg.

The retailer and wholesaler, battling with an activist investor group over the makeup and direction of its board, reported a preliminary comp-store sales increase of 7.2% in Q1.

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