Inflation Risks Challenge Walmart’s Premium Valuation Amid Consumer Slowdown
Walmart's stock has defied retail sector norms, trading at tech-like valuations despite its mature market position. The disparity grows starker as U.S. retail sales growth halved to 0.2% month-over-month in September, signaling inflationary pressure eroding consumer wallets.
While traditionally viewed as recession-proof, Walmart now faces its first real stress test since adopting growth-stock multiples. The Conference Board's confidence index confirms the strain—shoppers are pulling back just as the retailer's premium pricing assumes perpetual outperformance.