Walmart's CEO Says Shoppers Are Thriving--Even as Wall Street Sounds the Alarm

This article first appeared on GuruFocus.

Walmart (NYSE:WMT) is quietly sending a message that America's shoppers might be in better shape than Wall Street thinks. At CNBC's Invest in America forum, Walmart U.S. CEO John Furner pushed back against the cautious tone coming from the country's biggest banks, saying customers are still spending at a healthy pacejust more selectively. He described a resilient customer who's making smart trade-offs, not pulling back entirely. Despite patchy tariff-driven price hikes, Furner said Walmart plans to lean into discounts this fall, aiming to keep baskets full even as the economic data blackout from the government shutdown clouds the retail outlook.

Warning! GuruFocus has detected 10 Warning Signs with AEP. Is WMT fairly valued? Test your thesis with our free DCF calculator.

The comments landed as investors debate whether the U.S. consumer can keep driving growth after a summer rebound in retail sales. Census Bureau data showed spending increased for three consecutive months, supporting Furner's view that the underlying economy remains solid. Walmart's reach gives it an almost real-time window into the consumer pulse, and Furner's remarks suggest shoppers are navigating inflation pressures with discipline, not distress. That could make Walmart's fall quarter a key test case for whether the American spending engine still has fuel left.

But not every retailer sees the same story. At the Fortune Most Powerful Women summit, Best Buy CEO Corie Barry warned of a widening gap between higher- and lower-income shoppersa trend she said keeps her up at night. To stay relevant, Best Buy is pushing a broader range of affordable products to keep price-sensitive buyers engaged. Together, Walmart's optimism and Best Buy's caution capture the current fault line in U.S. retail: a consumer base that's still standing, still spending, but far more deliberate about every dollar that leaves their wallet.

View Comments