Your Go-To Discount Retailer Is About to Get Even Cheaper Walmart announced it is lowering prices on many items including select clothing, electronics, and toys.

By Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images

Although the prices of household items continue to skyrocket, Walmart announced on Monday that it would be reducing prices on select items, as well as reducing its profit outlook for Q2 as inflation continues to affect consumer behavior.

"The increasing levels of food and fuel inflation are affecting how customers spend, and while we've made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars," Walmart CEO and President Doug McMillon said in a company release. "We're now anticipating more pressure on general merchandise in the back half; however, we're encouraged by the start we're seeing on school supplies in Walmart U.S."

Inflation-related price upticks on necessities like food and other household supplies have led many to de-prioritize nonessential items like clothing, the retailer said.

Walmart also cut back significantly on inventory during the quarter as prices are expected to be marked down in the general merchandise category, which includes items like clothing, electronics, and toys.

Though the price decreases are great news for consumers, they mean quite the opposite for the companies imposing them -- less money being spent by customers means less of a profit gain for the retailers.

Walmart explained that many customers have been coming to the store (known for its low prices) to "save money during this inflationary period" which can be reflected in the grocery gains reported by the retailer.

Still, Walmart remains hopeful that Q2 results will be profitable, as the company stated that it expects U.S. same-store sales to increase around 6% during Q2 of 2022.

Walmart follows in the footsteps of rival chain Target, which announced in June that it would begin storewide markdowns and inventory clearouts in an effort to keep its head above water amid inflation and supply chain issues.

Walmart was down around 8% in premarket trading on Tuesday.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

'Nobody Ever Gave Me Anything': More Boomers Say They're Not Transferring Wealth to Family Until They're Dead

A new survey from Charles Schwab found boomers are more hesitant to distribute their wealth than other generations.

Franchise

The Simple Formula Behind a Top-Ranked Personal Care Franchise

Great Clips ranked #1 in the personal care category and #33 overall on Entrepreneur's 2025 Franchise 500.

Business News

Fans of Costco's $1.50 Hot Dog Combo Are In for a Big Surprise

Costco CEO Ron Vachris announced a change that's coming soon to the company's food courts.

Business Solutions

Business Owners are Cancelling Their OpenAI Membership for This Less Expensive Alternative

1min.AI gives you lifetime access to GPT-4o, Midjourney, Gemini, and more with no recurring costs.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Side Hustle

This 29-Year-Old Quit Working 12-Hour Overnight Shifts Because Her Side Hustle Brings In Up to $8,000 a Month: 'It Makes Me Happy'

Breanna Meertins picked up a fun hobby in her free time — then learned about an opportunity that would change everything.