Tuesday 15 November 2022 06:41 PM Middle-class shoppers turn to discount supermarkets as soaring inflation hits ... trends now
Middle-class shoppers pinched by decades' high inflation have turned to discount supermarkets, boosting sales at Walmart and Dollar General.
While inflation has dropped to 7.7 percent, it remains stubbornly high as Americans have felt the pains at the grocery lines, with many opting to search for better deals.
While bread and milk go for $4.79 and $8.99, respectively, at the high-end Whole Foods, the same items go for nearly half as much at Walmart, and even less at Dollar General.
Similar savings can be seen with a pair of steaks, which go for nearly $32 at Whole Foods, while Walmart sells it for $16.77 and Dollar General for just $9. When it comes to a dozen eggs, Whole Foods price is around $5.49, Walmart sells them for $3.23 and at Whole Foods, they go for $5.49.
Meanwhile butter goes for $9.99 at Wholefoods, where it goes for only $4.48 at Walmart and $4.45 at Dollar General. And flour fetches at about $6.39 at Whole Foods, where its priced at $3.83 at Walmart and $4.50 at Dollar General.
On Tuesday, Walmart reported annual US sales growth of 8.2 percent from last year, beating out Wall Street expectations as stocks soared by 7 percent as of noon.
The company noted that about 75 percent of Walmart's sales growth has been fueled by households that earn $100,000 a year, demonstrating the middle-class' flight to its stores for better deals.
GlobalData Retail analyst Neil Saunders told CNN: 'Although times are tougher, consumers' desire for value and low-prices is playing into Walmart's hands.'
Dollar General, which boasts regular low-prices, has also seen an influx of wealthier spenders due to inflation, with its stock up nearly 4 percent on Tuesday, and 12.66 percent over the last year.
More middle-class shoppers are going to Walmart, Dollar General and other discount stores for better deals on groceries to save money amid soaring inflation
Annual consumer inflation dropped below 8% last month for the first time in eight months
With an annual US sales growth of 8.2 percent from last year, Walmart has attributed its latest success to an influx of wealthier shoppers seeking deals amid high inflation. Pictured, shoppers at a Walmart in Brunswick, New Jersey
Along with reporting sales growth, Walmart noted in its report on Tuesday that its own private-brand sales grew as well, signaling that customers are opting to avoid splurging on brand-name items to save at the checkout lines.
The store also saw a significant three-month boost from its 'back-to-school season' promotions in the US.
Walmart Chief Financial Officer John David Rainey told CNBC
