Walmart Sheds $22 Billion in Valuation as US Consumer Confidence Hits 12-Year Low

Following last month’s messaging from Walmart CEO Doug McMillon surrounding waning consumer confidence, particularly from lower-income customers, the broader picture has now been revealed, and it’s not exactly rosy.

According to Fortune, Walmart saw its market cap tumble by a substantial $22 billion in the aftermath of a March 25 report from The Conference Board — one which suggested that consumer confidence, particularly concerning the future, now rested at a 12-year low.

“Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022,” said Stephanie Guichard, senior economist, global indicators at The Conference Board.

“Of the Index’s five components, only consumers’ assessment of present labor market conditions improved, albeit slightly. Views of current business conditions weakened to close to neutral. Consumers’ expectations were especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low. Meanwhile, consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations,” Guichard added.

The Consumer Confidence Index as a whole trended downward by 7.2 points in March to rest at 92.9 (a baseline of 100 was established in 1985). The Present Situation Index declined 3.6 points to 134.5, while the Expectations Index fell by 9.6 points to settle at 65.2. As Guichard mentioned, that represents the lowest level in more than a decade of measurements.

The majority of the pessimism or fear concerning the nation’s immediate future originated from survey respondents ages 55 and older, while those under 35 — as well as those earning more than $125,000 per year — expressed confidence.

Walmart Declines Request for Comment, but Other Sources Weigh In

And while Walmart declined Fortune’s request for comment on the matter, several other sources weighed in on the subject.

WalletHub analyst Chip Lupo told the outlet that weakening consumer confidence “is a worrying sign that our economic recovery may be stalling,” while Kelly LaVigne, vice president of consumer insights at Allianz Life, told Fortune that inflation remained a primary driver of concern.

“While the pain of inflation is hurting many Americans right now, the effect of inflation on your cost of living just compounds over time. That means inflation will continue to erode your purchasing power, unless you have a long-term strategy to address it,” LaVigne said.