Consumers disappointed for the first time in a decade: Former US CEO of Walmart


Consumers are starting to bow out for the first time in decades: FMR.  Walmart US CEO Bill Simon

The allure of bargaining may fade.

As the country’s three biggest retailers begin a major sales week, Walmart’s former U.S. CEO Bill Simon warned that consumers are starting to lean for the first time in a decade.

He’s blaming a catalog of adverse conditions that have adversely affected consumers, including inflation, higher interest rates, federal budget impasse, polarized politics and student loan repayments — and now new global tensions linked to violence in Israel.

“This kind of pile-up upsets consumers and makes them wary,” Walmart’s former U.S. CEO told CNBC’s “Fast Money” on Monday. “For the first time in a long time, the consumer has a reason to stop by.”

the time comes just like that Amazon Its two-day Prime Big Deal Days sale starts from Tuesday. wal-mart And Target Trying to compete with their own sales events to get an early lead in the holiday-shopping season.

Simon believes there is one striking similarity across retailers: The bargains aren’t as deep.

‘You’re not really proud of your price point’

“They usually say 50-inch TV [is] $199 or something like that. And now, they say 50 inch TV [is] 40% off,” Simon said. “You use percentages when you’re not really proud of your price point. I think inflation is driving up your relative price points.”

shares of Amazon, wal-mart And Target Have been under pressure for the last two months. Target is the worst performing of the three – down 19%.

Simon, who sits on Darden Restaurant And Hanesbrands The board believes that Walmart currently has a major advantage over its competitors.

“It’s entirely because of the food business,” Simon said. “They’ll likely have both the eyeballs and the food traffic to have a better Christmas than their competitors.”

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