Walmart Sales Slow as US Consumers Retreat From $4-a-Gallon Fuel

US retail giant Walmart reported slowing US sales growth in its second-quarter earnings released Thursday, August 20, 2026 (29 Mordad 1405). US same-store sales rose 2.6 percent, short of the 3.8 percent forecast by analysts at LSEG, marking the slowest quarterly increase in six years. According to Al Jazeera, CFO John David Rainey told analysts that once fuel prices climb above 4 dollars there is a psychological impact on consumers, who then make trade-offs in spending. Per data from the American Automobile Association, the average price for a gallon of gasoline rose to 4.10 dollars on Thursday, up from 4.07 dollars a week earlier and 2.98 dollars when the US and Israel first struck Iran.\n\nWalmart said it now expects 2 billion dollars in incremental fuel-related costs above its original guidance. Overall quarterly revenue rose 3.4 percent, the slowest pace since the first quarter of fiscal 2023. In-store foot traffic rose 1.5 percent, down from 3 percent the previous quarter, while US e-commerce sales jumped 24 percent. Walmart cut prices on 11,000 items on Wednesday, funded in part by 2.9 billion dollars in tariff refunds it received. Per Al Jazeera, citing Reuters, Walmart shares fell as much as 9.6 percent after the report; rivals Target (net sales up 5.3 percent) and TJX (sales up 1 percent, down from 6 percent the prior quarter) reported milder pullbacks. US Commerce Department data showed retail sales fell 0.6 percent in July, the largest drop since May 2025.