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Walmart (WMT) delivers Solid Growth
Predictions of a looming recession could be exaggerated. America’s largest brick and mortar retailer, Walmart (WMT) is delivering solid growth.
Recession fears are high because 34.4% of forecasters were predicting a US economic contraction in the fourth quarter of 2023, the Federal Reserve Bank of Philadelphia survey estimates. However, that number was down from 42% in the second quarter of 2023.
Walmart is an excellent barometer for the US economy because it operated 4,717 discount stores in the US in 2023, Statista estimates. However, that number is down from 4,742 stores in 2022, 7,43 stores in 2021, and 4,761 stores in 2019.
Hence, Walmart could be one of the first businesses to feel a recession. Walmart feels a recession fast because it sells essentials to the working and middle classes. For example, Walmart was America’s largest grocer with $613.3 billion in grocery sales in 2022, European Supermarket News estimates.
Interestingly, the US Census Bureau estimates American grocery sales grew by 2.9% between 2022 and 2023. However, those sales fell by 0.1% in September 2023. Thus, there is some evidence of a recession.
