December 22, 2025
Alexander2323/Depositphotos.com
Why Are Higher Income Households Still Driving Walmart’s Growth?
Although inflation has cooled from the high-single digit rates seen in 2022, Walmart Inc. again saw upper-income households lead its growth among demographics in the latest third quarter.
“We continue to benefit from higher income families choosing to shop with us more often,” said Doug McMillon, Walmart Inc.’s president and CEO on the third-quarter call, referencing both its Walmart and Sam’s Club businesses. “Middle income households have been steady and while lower income families have been under additional pressure of late, we’re encouraged by how our teams are meeting them with greater value across necessities, and doing what we can to help them stretch their dollars further.”
Wealthier shoppers have been leading Walmart’s growth for several years, with many attributing the gains to consumers trading down amid inflationary pressures. Last year, McMillon said shoppers from households earning more than $100,000 made up 75% of Walmart’s market share gains in the third quarter.
Walmart officials have contended wealthier shoppers are responding to upgrades to the experience at Walmart and Sam’s Club over the years. In June, Walmart’s introduced a “Walmart. Who knew?” campaign to highlight the changes, which include product upgrades — including in fresh food quality and its new premium private-label bettergoods range — as well as being able to offer over 500 million additional products from third-party sellers on Walmart Marketplace.
Gains of more than 40% in automotive, toys, electronics, and apparel on Walmart Marketplace in the third quarter “shows that customers are coming to us with this broader assortment, and it’s allowing us to cater to a broader set of customers than we have historically,” John David Rainey, Walmart’s CEO, told analysts.
Walmart is also seen benefitting from ongoing remodels that feature brighter lighting, wider aisles, and the addition of mannequins to complement elevated apparel assortments.
Walmart Suggests Flexibility Key To Retaining Higher-Income Spend
On its second-quarter analyst call this year, John Furner, Walmart Inc.’s incoming CEO and president (and current CEO, Walmart U.S.), said “flexibility” particularly appeals to the higher-income crowd, including having 35% of store-fulfilled orders delivered under three hours, with 20% of that portion arriving under 30 minutes.
He further said consumers across income levels are appreciating the convenience of one-stop shopping.
“Whether you’re planning out what you’re going to do this week, whether it’s fashion that you’re looking for, which is accelerated here at Walmart, or it’s an ingredient or something you’re missing, and you need in the next few minutes, we can help accomplish all these things for customers,” said Furner. “So, we’re excited about the growth across income groups. But I’m also particularly excited about the number of customers that we have met, acquired, seen who are higher income that are transacting more frequently with Walmart.”
BrainTrust
Carol Spieckerman
President, Spieckerman Retail
Cathy Hotka
Principal, Cathy Hotka & Associates
Georganne Bender
Principal, KIZER & BENDER Speaking
Recent Discussions
Discussion Questions
What are the obvious and less obvious reasons that Walmart is continuing to see higher-income shoppers lead its quarterly sales gains?
Are Walmart and Sam’s Club better positioned to retain newer upper-income customers shopping its stores and website in recent years versus previous trade-down periods?
Poll
The cost of living crisis has pushed more high income shoppers to Walmart. Even those whose incomes shield them from inflation resent higher prices and have turned to Walmart to help them save money in everyday items. What’s interesting is that, from our data, almost 80% of new converts to Walmart have stuck with the retailer and many have extended their spending there. It’s also worth noting that online has been a big facilitator of this expansion – with a lot of high income shoppers using Walmart’s ecommerce services for grocery.
Target’s faltering is Walmart’s gain – better merchandising and in-stock has led wealthier shoppers to discover that “Hey, Walmart is better than I thought!” and stick with them through multiple purchase and economic cycles.
Walmart’s continued strength with higher-income shoppers reflects both macro pressures and deliberate strategic moves rather than a random blip. Households earning over $100 K now account for a disproportionate share of Walmart’s market share gains, with roughly 75 % of recent customer growth coming from this segment — a stark contrast to the company’s historical core of price-sensitive, lower-income shoppers. On the obvious side, persistent inflation and economic uncertainty have made value — in the form of everyday low prices, aggressive price rollbacks, and strong EDLP messaging — increasingly attractive across income levels, even for affluent households that could afford higher-priced formats elsewhere. Less obviously, Walmart’s expanding product assortment (including premium and private-brand offerings), enhanced e-commerce and delivery capabilities, and store remodels have reshaped perceptions, making the brand feel both affordable and relevant to broader lifestyle needs — groceries, home goods, tech, and fashion — not just basics.
Walmart and Sam’s Club are better positioned today to retain these newer upper-income customers than during previous trade-down periods because the shift isn’t just economic necessity; it’s behavioral and experiential. Sam’s Club’s membership model, curated premium categories, and new convenience innovations (like Scan & Go and fast delivery) create a different value proposition for households who want efficiency and quality at scale, not just low prices. Meanwhile, Walmart’s broader omnichannel capabilities — from robust click-and-collect to Walmart+ perks — have turned it into a go-to destination across shopping missions, reducing the stigma that once kept affluent customers away. Ultimately, the combination of value, convenience, breadth of assortment, and digital experience gives both banners a durable advantage in retaining diverse shopper cohorts, even as competitors vie for budget-conscious and premium segments alike.
Much as with that famous remark by a bank robber:
“because that’s where the money is!”
But even if that weren’t the case, should anyone be surprised that a company’s growth segment is with groups it didn’t previously serve? (I would hope not)
Walmart stores are looking better these days, its apparel selections are nicer than Target’s latest offerings, and the outfits are all over social media. Personally, I can save at least $100 when stocking up at Walmart, compared to a traditional grocery store.
So, why are higher income households still driving Walmart’s growth? Because everyone likes to save money.
The top two reasons? Walmart’s ever-expanding online marketplace and convenience arsenal. Both give higher-income shoppers access to brands and products not found in Walmart stores, at great prices, and dropped on their doorstep (often in fewer than three hours). It’s an unbeatable combination.
Higher-income shoppers can shop with Walmart without shopping at Walmart.
What’s interesting here is how just a slight shift in Walmart’s merchandising strategy yielded such strong and sustained growth. They didn’t have to get rid of product lines, change their pricing strategy or sell out on their promise to do this. And in the process, they can still keep their core customer customers. Brilliant move. What will be interesting going forward is seeing if they push the limits a little more in markets sharing a Target and Costco.
I agree with all my colleagues, and I’ll add that Walmart’s communications with customers is superior. Customers know when packages are being shipped and when they arrive. It is easy to make a repeat purchase, and to return items. It’s a good experience.
Walmart is meeting people where they are at with smart prices and better in store experience. In today’s economy and the way priorities have shifted, people want to save money on every day items and spend on real life experiences.
From a systems and operating-model perspective, higher-income shoppers are choosing Walmart because it has optimized for time efficiency, not just price. Walmart has invested heavily in omnichannel orchestration, last-mile speed, and inventory visibility, enabling sub-hour fulfillment and true one-stop shopping. Programs like Walmart+ and frictionless mobile checkout at Sam’s Club reduce cognitive and transactional load.
This is materially different from prior trade-down cycles. Walmart has rebuilt the experience layer and fulfillment stack to retain these customers even as inflation normalizes. The technical challenge now is scaling that convenience without eroding access and value for lower-income segments.
Even without Walmart+… orders that are purchased as “shipping” get converted to delivery where it makes sense for the retailer. (location of physical product + transport options in a metro area).
For the wealthy, who have their assistants stock their house(s), the fair prices vs Albertsons or Kroger is a start point. Delivery and food+merchandise is another..
In good or bad economic times, if you drove by a Walmart, you would see Mercedes, BMWs, and other luxury vehicles. It’s not because these higher-income shoppers need to save money. It’s because everyone appreciates value. And even though Walmart is known for low prices, it’s only part of the value proposition. There is selection (high quality), convenience, clean stores, and they are VERY easy to do business with.
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The cost of living crisis has pushed more high income shoppers to Walmart. Even those whose incomes shield them from inflation resent higher prices and have turned to Walmart to help them save money in everyday items. What’s interesting is that, from our data, almost 80% of new converts to Walmart have stuck with the retailer and many have extended their spending there. It’s also worth noting that online has been a big facilitator of this expansion – with a lot of high income shoppers using Walmart’s ecommerce services for grocery.
Target’s faltering is Walmart’s gain – better merchandising and in-stock has led wealthier shoppers to discover that “Hey, Walmart is better than I thought!” and stick with them through multiple purchase and economic cycles.
Walmart’s continued strength with higher-income shoppers reflects both macro pressures and deliberate strategic moves rather than a random blip. Households earning over $100 K now account for a disproportionate share of Walmart’s market share gains, with roughly 75 % of recent customer growth coming from this segment — a stark contrast to the company’s historical core of price-sensitive, lower-income shoppers. On the obvious side, persistent inflation and economic uncertainty have made value — in the form of everyday low prices, aggressive price rollbacks, and strong EDLP messaging — increasingly attractive across income levels, even for affluent households that could afford higher-priced formats elsewhere. Less obviously, Walmart’s expanding product assortment (including premium and private-brand offerings), enhanced e-commerce and delivery capabilities, and store remodels have reshaped perceptions, making the brand feel both affordable and relevant to broader lifestyle needs — groceries, home goods, tech, and fashion — not just basics.
Walmart and Sam’s Club are better positioned today to retain these newer upper-income customers than during previous trade-down periods because the shift isn’t just economic necessity; it’s behavioral and experiential. Sam’s Club’s membership model, curated premium categories, and new convenience innovations (like Scan & Go and fast delivery) create a different value proposition for households who want efficiency and quality at scale, not just low prices. Meanwhile, Walmart’s broader omnichannel capabilities — from robust click-and-collect to Walmart+ perks — have turned it into a go-to destination across shopping missions, reducing the stigma that once kept affluent customers away. Ultimately, the combination of value, convenience, breadth of assortment, and digital experience gives both banners a durable advantage in retaining diverse shopper cohorts, even as competitors vie for budget-conscious and premium segments alike.
Much as with that famous remark by a bank robber:
“because that’s where the money is!”
But even if that weren’t the case, should anyone be surprised that a company’s growth segment is with groups it didn’t previously serve? (I would hope not)
Walmart stores are looking better these days, its apparel selections are nicer than Target’s latest offerings, and the outfits are all over social media. Personally, I can save at least $100 when stocking up at Walmart, compared to a traditional grocery store.
So, why are higher income households still driving Walmart’s growth? Because everyone likes to save money.
The top two reasons? Walmart’s ever-expanding online marketplace and convenience arsenal. Both give higher-income shoppers access to brands and products not found in Walmart stores, at great prices, and dropped on their doorstep (often in fewer than three hours). It’s an unbeatable combination.
Higher-income shoppers can shop with Walmart without shopping at Walmart.
What’s interesting here is how just a slight shift in Walmart’s merchandising strategy yielded such strong and sustained growth. They didn’t have to get rid of product lines, change their pricing strategy or sell out on their promise to do this. And in the process, they can still keep their core customer customers. Brilliant move. What will be interesting going forward is seeing if they push the limits a little more in markets sharing a Target and Costco.
I agree with all my colleagues, and I’ll add that Walmart’s communications with customers is superior. Customers know when packages are being shipped and when they arrive. It is easy to make a repeat purchase, and to return items. It’s a good experience.
Walmart is meeting people where they are at with smart prices and better in store experience. In today’s economy and the way priorities have shifted, people want to save money on every day items and spend on real life experiences.
From a systems and operating-model perspective, higher-income shoppers are choosing Walmart because it has optimized for time efficiency, not just price. Walmart has invested heavily in omnichannel orchestration, last-mile speed, and inventory visibility, enabling sub-hour fulfillment and true one-stop shopping. Programs like Walmart+ and frictionless mobile checkout at Sam’s Club reduce cognitive and transactional load.
This is materially different from prior trade-down cycles. Walmart has rebuilt the experience layer and fulfillment stack to retain these customers even as inflation normalizes. The technical challenge now is scaling that convenience without eroding access and value for lower-income segments.
Even without Walmart+… orders that are purchased as “shipping” get converted to delivery where it makes sense for the retailer. (location of physical product + transport options in a metro area).
For the wealthy, who have their assistants stock their house(s), the fair prices vs Albertsons or Kroger is a start point. Delivery and food+merchandise is another..
In good or bad economic times, if you drove by a Walmart, you would see Mercedes, BMWs, and other luxury vehicles. It’s not because these higher-income shoppers need to save money. It’s because everyone appreciates value. And even though Walmart is known for low prices, it’s only part of the value proposition. There is selection (high quality), convenience, clean stores, and they are VERY easy to do business with.