Facing weary customers, Walmart will use its nearly $3 billion in tariff refunds to lower prices
Walmart passed on tariff-related costs last year and is now trying to lower prices as shares fell nearly 9% after its U.S. sales growth hit a six-year low.
Walmart, after facing criticism for warning that Trump's tariffs would raise prices, will now use nearly $3 billion in tariff refunds to lower prices for customers. The refunds, which account for about half of Walmart's annual U.S. sales, come after the Supreme Court ruled the tariffs were unlawfully imposed. CFO John David Rainey told analysts on the company's earnings call that the funds will be reinvested into price leadership and customer experience, particularly in grocery and general merchandise categories.
Walmart now has over 11,000 items on rollback, up from approximately 7,200 a quarter ago. CEO John Furner emphasized that the company aims to reinforce its everyday low-price model. Shoppers are also feeling the impact of high gas prices, with Walmart expecting to bear an additional $2 billion in fuel-related costs this year. As a result, the retailer expects more than $2 billion in additional fuel-related costs this year compared to its original forecast.
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