Former Walmart CEO Warns of Bubble as Inflation Drives High-Income Spenders to Grocery Giant

Former Walmart US CEO Bill Simon warns that high-income grocery spending at Walmart may create a "bubble" that will be difficult for the retailer to maintain. While affluent shoppers helped drive Walmart's recent earnings beat, Simon says their needs around service will make the discount experience inadequate over the long run. Simon cites grocery inflation tailwinds currently benefiting Walmart but expects this to reverse as economic challenges ease and service becomes a higher priority. He predicts within two years, as inflation declines, higher-income shoppers will move away from Walmart back to retailers prioritizing service over price.