Analysts believe that Walmart’s emphasis on low prices for consumer basics contributed to the positivity of its recent earnings report:
“The diverging outlooks at the two big retailers underscore the likelihood of a ‘consumer-discretionary recession,’ as Cowen analyst Oliver Chen put it in a note to clients about Target’s results. October data released Wednesday by the US Commerce Department show a similar dynamic: Outlays on groceries, gas, eating out and personal care increased, while spending on hobby, electronics and general merchandise fell. “
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