Walmart Shares Business Strategy Amid Tariff Pressure
Walmart is sharing how it plans to continue driving growth and creating shareholder value despite the current economic climate. During its Investment Community Meeting in Dallas, the company said it is confident about future performance, but it is also maintaining flexibility to invest in price as tariffs are implemented across its supply chain.
Part of the company’s growth strategy includes improving customer and member experiences through low prices and a growing e-commerce assortment, along with faster delivery, curbside pickup and enhanced in-store shopping. Walmart is also working to strengthen its evolving business model by reshaping its profit mix to invest in lower prices for customers, associate wages and experience-enhancing technologies.
“The combination of a purpose-driven, people-centric culture with world-class technology is the winning formula,” said Doug McMillon, president and CEO. “Our customers want four things: everyday low prices, a broad assortment, a convenient and enjoyable shopping experience and to do business with a company they trust. We’re changing to serve them even better.”
As for the current economic environment, McMillon told investors during his presentation that the company is not immune to the effects of tariffs and other pressures, but he remains confident in Walmart and its ability to play offense.
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“Nothing about the current environment impacts our confidence in our business or our strategy,” he said. “The changes we’re making add even more strength and flexibility for our future.”
Despite McMillon’s confidence, Walmart has widened operating income guidance for its first quarter, which previously projected an increase of 0.5% to 2.0% in adjusted operating income for that time period. The company still expects to see 3% to 4% sales growth in fiscal Q1.
“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business,” said John David Rainey, EVP and CFO.
Continued Rainey: “We have fundamentally changed our business model through years of thoughtful, strategic investments and now have a financial model that yields much higher returns.”
Elsewhere across its business, Walmart recently announced big plans for its convenience services this year. The retailer, which currently operates more than 400 fuel and convenience stations nationwide, is poised to open or remodel more than 45 fuel stations across the United States.
With the new openings, Walmart will have more than 450 fuel and convenience locations across 34 states.
Meanwhile, the retailer is also looking to strengthen its Latin American division. Wal-Mart de México y Centroamérica (Walmex) recently unveiled plans to invest more than USD $6 billion (125 billion-plus pesos) in Mexico in 2025. With this investment, Walmex plans to open more stores in Mexico under the Bodega Aurrera, Sam's Club, Walmart Supercenter and Walmart Express formats.
Each week, approximately 270 million customers and members visit Walmart’s more than 10,750 stores and numerous e-commerce websites in 19 countries. With FY2025 revenue of $681 billion, the company employs approximately 2.1 million associates worldwide. Bentonville, Ark.-based Walmart U.S. is No. 1 on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
