Walmart CEO Says Consumers Changing Spending Due To Inflation, Egg Prices: 'The Money Runs Out Before The Month Is Gone … People Are Buying Smaller Pack Sizes'

A leading retailer executive is sending warning signs on consumer spending in the wake of higher egg prices, tariffs and higher inflation.

What Happened: Weeks after Walmart Inc WMT reported fourth-quarter financial results, the company's CEO is sending warnings about macroeconomic concerns.

Walmart CEO Doug McMillon said budget-conscious consumers are changing their spending habits as food prices stay high.

"You can see that the money runs out before the month is gone, you can see that people are buying smaller pack sizes at the end of the month," McMillon said at the Economic Club of Chicago recently, as reported by the Boston Herald.

McMillon said American consumers are looking for value when making their purchases.

While some items have come down in price, McMillon said food prices on items, including eggs remain elevated and are leading to consumers changing their spending habits.

"There are lots of income levels in this country — if you're at the lower end of that scale, you are feeling more frustration and pain because of higher food prices. They've persisted for years now, and you're just tired of it."

Why It's Important: McMillon's comments come after Walmart's guidance signaled uncertainty over macroeconomic conditions.

Walmart CFO John David Rainey said a higher level of uncertainty led to the company's cautious guidance.

"We have to acknowledge that we are in an uncertain time. And we don't want to get out over our skis here. There's a lot of the year to play out," Rainey said.

Rainey said tariffs create more uncertainty with food prices already high. The CFO said the retailer will work hard to "keep prices low."

"We are not immune to what is being suggested, but we'll work with suppliers."

Rainey said egg prices were a bit of an anomaly and could work itself out over time.

The comments also come after January inflation jumped the most since August 2023, with the rising price in the cost of eggs one of the contributing factors.

Other retailers facing high inflation and changing consumer spending have shared comments on Trump's tariff plans in recent months, including Dollar Tree Inc DLTR CEO Mike Creedon.

Creedon said the retailer could increase prices or change its product assortment due to Trump's tariffs. The CEO highlighted potential changes to pack sizes as one way to fight off tariffs.

"We believe there is a wide range of potential actions that we can take to help mitigate additional tariffs if and when they materialize," Creedon previously said.

Based on comments from Walmart and Dollar Tree, consumers are already buying smaller pack sizes in some cases with high food costs at stores and inflation still a major concern. With smaller pack sizes already being bought and consumers running out of money by month’s end, tariffs that could see prices rise could be a large concern for consumers.

WMT Price Action: Walmart stock is down 3.47% to $88.50 on Monday versus a 52-week trading range of $58.56 to $105.30. Walmart stock is down 1.6% year-to-date in 2025 and up 46% over the last year.

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