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Despite price cuts, Walmart’s grocery department records “slight inflation”

Walmart cut prices on 7,200 products this summer as part of the company's “rollbacks,” but one department is being a bit more “stubborn” when it comes to price cuts.

Rollback is a term the retail giant uses to describe a temporary price reduction on a product that lasts longer than 90 days, Walmart said in an email to USA TODAY. About 35% of Walmart's price cuts were on groceries.

Despite the price cuts, Walmart “still has some inflation” in the grocery category at the end of the second quarter (the three-month period May-July 2024), said Walmart CEO Douglas McMillon. Walmart's 2025 fiscal year ends on January 31, 2025.

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“In dry foods, inflation has been most persistent in processed foods,” McMillon said during the company's quarterly earnings conference call on Aug. 15.

Grains are just one example of dry, processed foods.

While he hopes that brands will try to increase sales by slightly reducing prices and investing in the quality of their products, some are still talking about price increases.

“I don't think we're going to see a big deflation in our numbers going forward,” McMillon said. “It's probably going to settle at about where we are now, with the composition reflected as I just described.”

Attracting younger customers

Both Walmart and Sam's Club offered slightly lower prices overall during the quarter, McMillon said.

“Customers of all income levels are looking for value and that’s what we offer,” he said.

Sam's Club saw an increase in membership across all income brackets and younger generations: “Generation Z and Millennials accounted for about half of new members in the second quarter,” said John David Rainey, Walmart's chief financial officer and executive vice president.

He adds that this is “a positive signal for the company’s future growth.”

Julia is a trends reporter for USA TODAY. She has covered a variety of topics, from local business and government in her hometown of Miami to technology and pop culture. You can connect with her on LinkedIn or follow her on X, formerly Twitter, Instagram And TikTok: @juliamariegz

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