Walmart also 'Raises a White Flag' in the Tariff War…To Revise Ultra-low Price Strategy

Walmart, Occupying A Dominant Position In The U.S. Retail Market (Source: Delish)

The Largest Retailer In The U.S., Walmart, Has Predicted Price Increases For Its Products Due To The Tariff War By The Trump Administration. As Walmart, Which Had Maintained Price Competitiveness Under The Policy Of "Low Prices," Could Not Overcome The Tariff Pressure And Started Price Adjustments, Concerns Are Emerging That The Wave Of Price Increases Will Spread Across The Retail Industry.

On The 15th (Local Time), Walmart Announced That It Plans To Raise Prices Of Products Displayed On Store Shelves This Month And Early Summer Due To The Impact Of Tariffs On China. John David Rainey, Walmart's Chief Financial Officer (CFO), Said In An Interview With CNBC, "Tariffs Are Still Too High," And "It's Difficult To Absorb All The Price Increase Pressure In A Situation Of Low Retail Margins." He Further Explained, "The Impact Of These Prices On Us Is Historically Unprecedented."

Walmart's Decision To Increase Prices Is Expected To Cause Major Ripples In The Retail Industry. Reuters Evaluated, "Walmart's Influence Is So Massive That About 90% Of The U.S. Population Lives Within Approximately 16 Km Of A Walmart Store," And "This Decision Clearly Shows The Impact Of The Trade War On Companies."

As Price Increases Perceptible To Consumers Become A Reality, There Is Analysis That Inflationary Pressures Within The U.S. May Intensify Even Further. Attention Is Also Given To Whether Walmart's Decision Will Affect Other Large Retailers In The Future.