Walmart Says It Will Use Tariff Refunds to Lower Prices

Walmart will likely put its tariff refunds toward lowering store prices, executives said on Thursday, as they described shoppers who are increasingly anxious about the rising cost of fuel. In recent weeks, visitors to Walmart's gas stations have begun to fill up with fewer than ten gallons for the first time since 2022. Officials said this change signals financial stress among some customers.

The company reported that higher-income customers are spending with confidence while lower-income consumers are more budget-conscious. U.S. sales grew 4.1% from February through April. Executives said the single best return on capital right now is investment in the customer through lower prices. They noted that Walmart's stores and gas stations have been drawing more shoppers looking for deals.

Rival retailers Home Depot, Target and Lowe's also held earnings calls this week and reported sales growth in the latest quarter. Federal data shows spending at retail stores and online grew 5.2% in April compared to a year earlier. Spending at gas stations surged 21% in April, driven by higher gas prices.

The average U.S. price of regular gas on Thursday was $4.56 per gallon, up $1.38 from a year ago. Walmart reported a hit to its income from higher fuel expenses. Home Depot executives said the company might use its own tariff refunds to offset mounting fuel costs.