Walmart US CEO Greg Foran expressed concerns about the potential impact of tariffs on the company’s business operations and customers during a briefing with analysts earlier this month.
Foran stated that Walmart is seeing a ripple effect from tariffs, especially on its core business products, such as clothing, electronics, and home goods. He mentioned that costs for these items are expected to increase due to increased tariffs, which could erode profit margins.
“If you look at our businesses, we’ve got fashion, we’ve got electronic, we’ve got food, and we’ve got general merchandise, and right across those businesses, I’m seeing increases in terms of tariffs,” Foran said.
He also commented on the effect of tariffs on Walmart’s customers. “The cost of consumer goods is going up significantly, and it’s primarily because of the tariffs.” Foran believes that this increasing cost will likely be felt by customers in the future, potentially affecting their purchase decisions.
To mitigate this impact, Walmart is relying on its existing supply chain management and inventory management expertise to minimize the effects of tariffs. Additionally, Foran mentioned that the retailer is working with its trading partners to navigate the rapidly changing tariff environment.
Moreover, Foran emphasized Walmart’s commitment to its mission to provide affordable products and services to its customers while adapting to the changing conditions.
“We’ve got 260 million customers walking in and out of our doors every week. We care about those customers, we care about what they get for their hard-earned money, and we are committed to finding ways to deliver that for them regardless of the external environment that we’re operating in.”
The CEO expressed optimism for Walmart’s long-term competitiveness and ability to adapt in a rapidly changing environment despite the challenges posed by the tariffs.