Walmart’s CEO says that shopkeepers will see high prices soon: report

Walmart reported Solid quarterly results On Thursday, but noticed that it would have to start raising prices soon. Is retailer Largest in America with More than 4,600 places,

Walmart CEO Dag McMillan said Thursday’s earnings call This Walmart was not able to “absorb” the “high cost” given the reality of the narrow retail margin. ,

Macmillan said on the call, “Even at low levels, high tariffs will result in high prices.”

In response, Walmart’s Chief Financial Officer John David Renny told CNBC In an interview on Thursday, the tariffs for the company to absorb cost were still “too much”. Renny warns that Walmart’s shopkeepers could start looking at high prices at some goods at the end of the month, and high -scale high prices starting next month.

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“We are wired for everyday low prices, but the magnitude of these growth is higher than any retailer,” Renny said. CNBC“So I worry that the consumer is going to start looking at high prices. You will start looking at it, towards the end of this month’s tail, and then definitely more in June.”

Earlier this week, America Agreed this week To reduce its maximum tariff rate 145% on China for the next 90 days. China is Shortage Its 125% tariff on US products for the same time period is 10%. Meanwhile, America has imposed one 10% universal tariff On almost all imports.

Walmart Officer An investor is said in the program In April, two-thirds of retailer goods in the US, including grocery items, were domestically grown or manufactured. The remaining third products of Walmart come from other countries, especially China and Mexico.

Renny told CNBC On Thursday, Walmart is still collaborating with vendors to keep prices low. He said that Walmart has not yet canceled any order from suppliers, but has reduced some in response to trade policies.

^{Walmart CEO Dag McMillan. Photo by Ethan Miller/Getty Image}

Walmart is not the only major retailer recently warning customers about price hike. Target CEO Brian Cornell Told shopkeepers In March, food prices may increase, especially on production from Mexico. CostCo CEO Ron Vakris said last month that retailer was working to reduce the impact of tariffs on customers and one-third of its sales in the US are imported from other countries.

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Wal-mart Issued Its first quarter earnings on Thursday, stating that the sale of the US store increased by 3.2% year-on-year, reaching $ 112.2 billion. Walmart’s overall global revenue introduced $ 165.6 billion in its first quarter, which was 2.5% from the same time as last year. Retail veteran reported that health and welfare products and grocery items removed the strength of its sale.

The company’s American e-commerce business increased by 21% compared to last year and gained profitability for the first time.

Walmart Made $ 681 billion In 2024, making it Largest retailer in the world Based on revenue. This is expected to increase revenue by 3% to 4% This year.