Walmart Warns Of Stressed Shoppers as Consumer Confidence Hits ROCK BOTTOM – What Lies Ahead?

As of today, Walmart finds itself at a crossroads. The retail giant, long seen as a haven during economic uncertainty, saw its market capitalization drop by nearly $22 billion in a single day after the Conference Board reported that U.S. consumer confidence hit a 12-year low. This marks the fourth consecutive monthly decline, with the expectations index plummeting to 65.2 — a level that typically signals a looming recession. Even Walmart’s own CEO Doug McMillon has warned of “stressed” and “budget-constrained” consumer behavior, citing changes in purchasing patterns and smaller pack sizes late in the month. Despite strong earnings, a growing e-commerce presence, and substantial investments in AI and fulfillment automation, investors are beginning to question how much longer Walmart can defy the gravity of weakening macroeconomic sentiment. When consumer confidence erodes, even the most resilient retailers feel the impact. Here are four key reasons why caution may be warranted when it comes to Walmart and the broader retail sector.