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US Consumers Cut Spending as High Living Costs Hit Walmart Sales

21 August 2026 02:08 AM

NEWS DESK

Rising living costs and growing economic uncertainty are prompting US consumers to tighten their spending, weighing on the business of Walmart, the world’s largest retailer.

Walmart’s US comparable-store sales growth fell to its lowest level in more than six years in the latest quarter, raising concerns among market analysts that weaker consumer demand could also reduce export orders from countries that supply goods to the US retail giant.

In its financial report released Thursday, Walmart said comparable sales at its US stores increased 2.6% in the latest quarter. The weaker-than-expected sales performance pushed the company’s shares lower in premarket trading.

Despite the slowdown, Walmart raised its sales and profit forecasts for the full fiscal year.

Walmart has gained popularity among price-conscious consumers in recent years as shoppers increasingly turned to the retailer for cheaper products amid economic uncertainty. The company said its latest US sales growth was partly affected by lower drug prices following regulatory changes.

However, the unusually weak performance has renewed concerns about the strength of US consumer spending.

Several major retailers, including Walmart, Target, Home Depot, Lowe’s and TJX, reported their latest financial results this week. Their reports suggest that while consumers remain in relatively stable financial condition, they are becoming more selective and seeking greater value for every dollar they spend.

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