Walmart, Target and TJX report higher sales as fuel costs rise

Walmart, Target and TJX reported higher sales in their most recent quarters. The results followed similar reports from other major retailers including McDonald’s and Lowe’s. S. 1 percent in the three months through April compared with the same period last year.

Operating profit rose about 5 percent. The company said it absorbed higher fuel costs rather than passing them on to customers. Target reported its strongest quarterly sales in nearly five years. TJX, the parent company of TJ Maxx, said sales exceeded the company’s plan.

Both retailers cited changes in consumer behavior amid higher prices.

Walmart noted continued sales of its lower-priced private label goods. Higher-income households traded down to stretch budgets. Target reduced prices on thousands of items. At McDonald’s, value meals drove sales. The personal savings rate reached its lowest level since 2022.

Lower-income households increased use of credit cards for purchases. Walmart executives said they are maintaining a cautious approach given economic uncertainty and reduced discretionary spending by lower-income households.