Last week, Walmart shared that revenue was up 205% from the previous year. That beat their estimated revenue jump by about $2 billion. Paul Gatling, editor of the Northwest Arkansas Business Journal spoke with Roby Brock this weekend about the news from Walmart. Gatling said one of the most interesting takeaways he heard came from Walmart’s Chief Financial Officer, John Rainey, who pointed out that inflation may have played a role in their higher than expected earnings.
"The high inflation and the high cost of going out to eat is perhaps driving more customers to the grocery aisle," Gatling said, paraphrasing Rainey. "A little over $5 million and $160-some million in sales, I think Tuesday was a good day for Walmart."
The Northwest Arkansas Business Journal also reported that Walmart was planning to cut hundreds of jobs, close eight different stores, and relocate some of their workers located outside of Bentonville. Gatling says one thing that is at play for the company is their $1 billion-plus investment in their brand new home office.
"I don't think they're building that to make it an option for people to work at on certain days," Gatling said. "That's where they would like most of their people to work. Donna Morris [Walmart's chief people officer] said it improves company culture, working together and sharing ideas together. Yes, there is some restructuring, unfortunately there are several hundred job losses. But, it's not the first time they've announced restructuring like this, and it probably won't be the last."
You can hear Brock and Gatling's full conversation here.
