A BELOVED retailer famous for its “deep discounts” is set to introduce price hikes in the coming weeks, according to the CFO.
The popular bargain chain said high tariffs are behind the price hikes.
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Walmart Chief Financial Officer, John David Rainey, has confirmed that shoppers can expect higher prices when shopping at their local branch.
He told CNBC: “I’m concerned that consumers are going to start seeing higher prices.
“You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June.”
Despite the news of a price hike, the discount chain claimed that there has not been a shit in consumer behaviour.
John added: “They’re maybe a little concerned about possible looming price increases, but their behaviors largely have not changed.”
Rising tariffs are said to be driving the price hike for consumers.
Costa Rica, Peru, and Colombia have all faced tariffs on their goods, leading to rising prices for bananas, avocados, and coffee.
However, the Walmart CEO, Doug McMillon claimed the popular chain plans to “play offense” in keeping prices down for consumers.
He added that the retailer has reduced the size of some orders which they anticipate will sell less because of higher tariffs.
SHOPPING STRIFE
The Walmart executive’s vague stance on the implications of the trade war on future prices stems from the dire extent of the economic uncertainty that it has caused.
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump’s new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
- Coffee
- Tea
- Bananas
- Foreign-made cars
- Sneakers
- Furniture and other home goods
- Pharmaceuticals
- Video games
- Clothing
- Toys
- Washers and dryers
- Avocados
- Housing materials
Although President Trump has lowered tariffs on foreign imports since the start of the trade war in February, fear remains high.
While Walmart is confident in its ability to emerge from the tariff crisis unscathed, the company has admitted that it is not fully immune in the short term – and consumers will soon see the effects.
Executives previously spoke out on the impending impact of the trade war on costs, sparking fears over higher shelf prices.
“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” company CFO John David Rainey previously told The Wall Street Journal.
“It’s a dynamic and fluid environment.”
US companies importing goods from China, such as Walmart, are the ones who directly pay tariffs.
These costs are often then passed on to American consumers in the form of higher prices.
While Walmart aims to provide affordability and value to its customers, the vast extent of its spiking expenses is far more than the retailer can take on alone.
As a result, Walmart’s everyday low prices could take a hit.
The average household could pay an extra $1,600 to $2,000 each year thanks to price increases caused by the tariffs, according to predictions from the Yale Budget Lab.
The tariff battle could raise prices in a variety of categories, including toys – a beloved toymaker has addressed Christmas shortage fears after shopper outrage over Barbie prices.
In addition to price increases, shoppers may see empty shelves – retail expert revealed the exact date to expect the shortages.
PRODUCT WARNING
As food prices continue to rise and supply chain issues persist, shoppers are advised to monitor prices closely and consider alternative retailers when necessary.
Some have suggested shopping at multiple stores to find the best deals.
Ultimately, the situation at Aldi reflects broader challenges facing the grocery industry, as retailers grapple with inflation, supply chain disruptions, and changing consumer behavior.
How to cut the cost of your grocery shop
BELOW are some tips on how to reduce the amount you spend on groceries.
- Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley
- Create a budget – Work out a weekly budget for your food shopping
- Never shop hungry – You are far more likely to buy more food if your tummy is rumbling
- Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering
- Use social media – Follow your favourite retailers to find out about the latest deals
- Be disloyal – You may want to go to different stores to find the best bargains
- Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more
- Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
