Walmart’s Image Makeover Is Attracting High-Income Earners

Today’s Walmart is quite different from the one many of us grew up with. According to CFO John David Rainey, the change is part of a specific strategy.

The retail giant has been steadily revamping its image and stores to attract higher-income shoppers — a demographic that Walmart has traditionally ignored.

“Today’s Walmart is very different than the Walmart of several years ago,” Rainey said, per FOX Business.

The new approach seems to be working. In the most recent fiscal quarter, the retailer reported an uptick in U.S. market share across all categories, 75% of which came from higher-income households earning $100,000 or more annually.

Rainey thinks the positive growth can be attributed to Walmart’s broader appeal to all shoppers, especially those in higher income brackets, and its ever-growing product selection. Included in the expanded product choices are brands often purchased by more affluent customers, like Apple and Bose.

The company’s revenue climbed 5% to almost $170 billion in the third quarter compared to the same period last year. Net income increased by $453 million, peaking at $4.6 billion.

The Walmart Store Experience

Every year since 2021, Walmart has renovated around 700 stores, with even more remodels coming in the approaching fiscal year. The improved stores have better layouts, enhanced customer-support technology, and added products to choose from. The checkout area has been revitalized along with fresh paint and new shopping carts.

“When you walk into one of these remodeled stores, it’s a very, very different experience from what you’ve thought about historically,” said Rainey. 

While the big-box retailer is busy revamping some stores and opening others, some locations are on the way to being shuttered. About 11 stores across six states, including California and Georgia, will be closed by the end of 2024.

Walmart currently operates about 4,600 stores in the U.S., employing roughly 1.6 million associates. As of last count, more than 700 million items can be purchased from the retailer.