Walmart, the world’s largest retailer, is facing a tough year ahead as the Federal Reserve’s recent rate hike has created economic uncertainty and caused the company to issue a cautious outlook.
The company’s fourth-quarter earnings report showed strong holiday sales, but Walmart warned it expects to see lower performance in 2023 due to the current economic climate.
Walmart CEO Doug McMillon said in a statement, “The economic environment is uncertain, and we are planning for a year of continued investment and modest sales growth.”
The company’s outlook comes as it has seen a surge in high-income shoppers in the grocery aisle, despite “stubborn inflation” in the sector.
Walmart is continuing to invest in its operations, including its e-commerce business, in order to remain competitive and capitalize on the growing demand for online shopping.
The company is also investing in new technologies such as artificial intelligence, robotics, and automation to help improve its supply chain and customer experience.
Despite the uncertain outlook, Walmart remains confident that it can weather the storm and continue to deliver value to its customers.
View Full Coverage on USNN for more information on Walmart’s outlook for the year ahead.