Walmart warns US shoppers are cutting spending as higher gas prices bite

Walmart warns that rising fuel prices are forcing U.S. shoppers to cut spending elsewhere, as the retail giant forecasts a slowdown in sales growth for the coming months ^[1][2].

The company expects its sales growth to slow to between 4% and 5% from May through July, down from a 7.3% increase in the previous quarter ^[1][2]. This shift comes as the average price for a gallon of fuel has reached $4.56, a significant increase from $3 when the conflict with Iran began ^[1][2]. Walmart finance chief John David Rainey stated that fading tax refunds will leave consumers feeling more pressure from higher fuel costs in the current quarter ^[1][2]. He also warned that a prolonged closure of the Strait of Hormuz could force the retailer to raise food prices due to potential shortages ^[1][2]. Despite the cautious outlook, Walmart reported a strong first-quarter profit of $5.3 billion for the period from February to April, an 18.8% increase from a year earlier, with sales rising to $177.8 billion ^[1][2].