This summer, Walmart has reduced prices on approximately 7,200 products as part of their “rollback” initiative, yet one specific area has been less responsive to price cuts.

The term “rollback” refers to Walmart’s strategy of implementing temporary price reductions that persist for over 90 days, as explained in a recent email to YSL News. Food products account for around 35% of these rollbacks.

Despite these reductions, Walmart still notes a slight inflation in food prices at the end of their second quarter (covering May to July 2024), according to CEO Douglas McMillon. Walmart’s fiscal year for 2025 concludes on January 31, 2025.

“In the dry grocery segment, it’s mainly processed food items where prices have been less flexible,” McMillon mentioned during the earnings conference on August 15.

Cereals are a prime example of processed dry goods.

While McMillon hopes brands will find ways to increase sales by lowering prices and improving product value, there are still discussions about potential price hikes.

“I don’t expect to see significant deflation in our forecasts moving forward,” McMillon stated. “I believe the situation will stabilize around current levels, reflecting the mix of products.”

Targeting Younger Customers

McMillon also noted that both Walmart and Sam’s Club recorded slight overall price reductions during the quarter.

“Shoppers from every income range are searching for value, and we have that to offer,” he emphasized.

Sam’s Club has experienced an uptick in memberships from diverse income groups, especially younger individuals, with “Gen Z and millennials making up about half of new memberships in Q2,” noted John David Rainey, Walmart’s CFO and executive VP.

Rainey described this as a promising sign for the company’s future growth.

Julia is a trending reporter for YSL News, covering a range of topics from local businesses in Miami to technology and pop culture. You can connect with her on LinkedIn, or follow her on X, formerly Twitter, Instagram, and TikTok: @juliamariegz