Penny-pinching Walmart shoppers focus much more on getting the lowest prices than on whether products are made in the U.S., Canada, China or elsewhere, Walmart executives have said.
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When Walmart discloses results on Thursday, the chain of more than 4,600 U.S. stores is likely to show that it rang up record annual sales, according to LSEG estimates.
Walmart revenue rose by roughly 5% to $680.47 billion for the year ending January 31, 2025, according to LSEG estimates ahead of the results.
But some Walmart investors worry its bargain-price-above-all approach leaves the retailer in a bind under President Donald Trump as he slaps new tariffs on goods made in China and threatens them on products made in India, Mexico and Canada.
Walmart is among the first big U.S. retailers to report results for the fourth quarter, including holiday season sales.
The retailer serves as a barometer for consumer spending due to its scale and commanding market share of the U.S. retail industry. Investors watch its earnings closely for hints about U.S. economic health.
Also the largest U.S. importer of containerized goods, Walmart generates 40% of its sales from discretionary merchandise like clothing, electronics and toys, items sourced primarily from China, India and other nations targeted by Trump’s new tariffs, opens new tab.
For the current year, Wall Street analysts expect Walmart’s revenue growth rate to slow to 4%, hinting at anxiety over tariffs. A Walmart spokesperson declined to comment, saying the company was in its quiet period ahead of its earnings report.
Brian Mulberry, client portfolio manager at Zacks Investment Management, a Walmart investor, said he will look at Walmart’s Great Value in-house brand as a yardstick to measure the impact of tariffs. Mulberry noted that China is the source of over 70% of the household and generic non-food products that Great Value sells such as electronics, accessories, plastic food containers and sporting goods.
Walmart has maintained its profit margins by reducing reliance on China, increasing warehouse automation, and relocating white-collar jobs to lower-cost areas like Arkansas.
Walmart has also committed, opens new tab to invest $350 billion over 10 years to source products from suppliers that make, grow or assemble in the U.S., to help it save costs by shortening lead times and keeping shelves better stocked. “I don’t want price increases to put pressure on sales growth, so a balanced approach is needed,” Hare said, explaining he would like Walmart to share tariff costs with suppliers and manufacturers.
UBS analyst Michael Lasser, who last week raised his price target on Walmart’s stock to $113 from $100, said that while Trump’s election boosted inflationary pressures with new tariffs and immigration policies, Walmart’s everyday low-price strategy would likely drive shoppers to spend more there.
“We believe Walmart would be one of the better positioned retailers to mitigate or manage through tariffs, given its price leadership, buying power, and global sourcing capabilities,” Lasser said.
On Friday, guests at a millinery in central London tried on hats of various shapes and sizes. Some leant in to smell a chocolate design, while others admired one infused with the scent of autumn.
A tempered chocolate hat on display as milliner Stephen Jones showcases his Autumn/Winter 2025-2026 collection at his Covent Garden shop during London Fashion Week, 21 February 2025. – Photo credit: AFP
Legendary British milliner Stephen Jones brought sensory experiences to his Autumn/Winter 2025 presentation at London Fashion Week, showcasing hats crafted from satin, tartan, crêpe, and even glass. “I was thinking about how people connected through hats, and so it’s about sight, and taste, and touch,” Jones, who also designs hats for Dior, told AFP at his studio in Covent Garden.
Feathers floated atop a delicate fascinator, icy beads dangled down from another headband, and Jones described a black satin flat cap with white piping as “assured” and “fun.”
“What is fashion about? Is fashion a uniform? Is fashion self-expression? Can fashion be fun? So that’s why this collection came about,” Jones said.
In the background, one guest tried on a hat with gauzy petals piled high, exclaiming, “It’s so strange; when I take the hat off, I feel naked.” The centre of attraction was a Willy Wonka-esque top hat made of chocolate with a bite-size hole in its crown, which Jones crafted in collaboration with Paris-based pâtisserie Jana Lai.
Jones has already received an order for the hat from a “lady who wants to wear it for her birthday party” and said the confectionary head covering can be worn by “anyone.”
“Not somewhere too hot, though”, he mused.
Celebrating life
From plush berets for Princess Diana to towering headdresses strutted down Dior runways, Jones’s hats have served as the crowning glory of celebrities and designers for over four decades.
His work is currently on display in a retrospective at Paris’s Palais Galliera called “Stephen Jones, Chapeaux d’Artiste”, which brings together some 170 hats spanning his career.
Jones, 67, was born “near Liverpool, in the middle of nowhere”.
“So, for me, Paris was always such an exciting place,” said Jones, who divides his time between London and Paris.
“Paris has always influenced my work,” he added, a customary brown beret balancing on his head.
Jones crafted his first hat when he was a student at London’s Central Saint Martins out of a cereal box and scraps from his sister’s blouse. That sense of whimsy and innovation never really went away.
“Everything else can be super serious, but fashion and hats need to be about celebrating life,” he said. “Especially at the moment.” For the millinery guru, participating in fashion week during a time of global political uncertainty was “strange.” “But that’s what fashion does. At least you can control how you get dressed in the morning.”
“Hats are so popular because they’re like a talisman of something. It’s a talisman of hope,” said Jones. “People wear jackets and tailoring and shoes… But to show your individuality, maybe a hat is a very good way of doing that.”
Despite dressing a roster of fashion royalty, Jones said he still has not made a hat for Britain’s Queen Camilla. “The Queen hasn’t worn my hats yet. Maybe one day I’ll make a hat (for her),” said Jones.
After 45 years of presenting collections, how does he keep pulling ideas out of his hat?
“I guess that’s my character. I live my life and put it into a hat.”
There’s no such thing as consistency when it comes to consumer confidence, at the moment at least, as trying to read consumer emotions in February is a little tough.
Photo: Pexels
GfK has its long-running Consumer Confidence Index increasing two points to -20 this month and its other measures to gauge sentiment were also all up on January.
This is in stark contrast to yesterday’s (20 February) data from the British Retail Consortium which showed confidence down three points February from January, the fifth consecutive month in which expectations have worsened.
The GfK index measuring changes in personal finances during the last year is up three points at -7; seven points better than February 2024 and the forecast for personal finances over the next 12 months is up four points at +2, which is two points better than this time last year. But according to the BRC it had its consumer personal financial situation falling 7 points from January.
GfK’s measure for the general economic situation of the country during the last 12 months is also up two points to -44, one point lower than in February 2024 and expectations for the general economic situation over the next 12 months have improved three points to -31, still seven points worse than February 2024.
The Major Purchase Index is also up three points to -17, eight points better than this month last year, while The Savings Index stayed at +30 in February, one point higher than this time last year.
Neil Bellamy, Consumer Insights Director, NIQ GfK, said it its reading: “The biggest improvement is in how consumers see their personal finances for the coming year with an increase of four points that takes this measure out of negative territory to +2.
“The Bank of England interest rate cut on 6 February will have brightened the mood for some people, but the majority are still struggling with a cost-of-living crisis that is far from over. Prices are still rising above the Bank of England’s target; gas and electricity bills remain a challenge for many households. So it’s no surprise that consumer views on the general economic situation are still lower than 12 months ago, suggesting that people don’t expect the economy to show any dramatic signs of improvement soon. Politicians looking for bright spots on the horizon will be disappointed.”
Interestingly, with the survey coming on the day that the UK’s statistics body said January retail sales volumes rose, home delivery expert Parcelhero said that “shoppers may say they are worried about the state of the economy, but that didn’t stop them splashing out at the supermarket”.
Its head of Consumer Research, David Jinks, said consumers might not actually be feeling as bad as they think they are.
“When it came to actually spending money, it seems that they actually splashed the cash more in January than at any time in the last few months,” he said.
It will be interesting to see how both the retail sales picture and the consumer confidence picture develop in the months ahead.
The Perfume Shop and Deliveroo are extending their retail partnership to cover further UK locations, following a successful launch period last year.
The widening of its association, launched last year as Eau De-Liveroo x The Perfume Shop, comes as research reveals 47% of Britons have forgotten to wear or pack their favourite perfume when heading out, “leaving them feeling annoyed (24%), or unprepared (18%)”.
During peak periods, the retailer said the partnership managed to directly generate in-store sales in 21 locations covering London, Manchester, Bristol, Birmingham, Leeds, Glasgow and Edinburgh. “With over 1,000 perfumes available for quick delivery, the partnership has proven particularly popular during key shopping seasons over Black Friday and throughout December”, it added.
Milton Keynes was the most recent to introduce the Deliveroo app service, and there are plans to continue rolling out additional locations over 2025.
Gill Smith, managing director at The Perfume Shop said: “The success of our partnership… is a testament to the growing demand for seamless, on-demand shopping experiences”
Suzy McClintock, VP for New Verticals at Deliveroo added: “This successful partnership has not only driven sales but is also helping reshape the way customers shop by offering fast, on-demand delivery of over 1,000 fragrances across the UK.
Deliveroo is also continuing to expand its partnership to other retailers including Hurr, Accessorize, Hemp and Boots.
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