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Updated on: August 20, 2026 / 10:30 AM EDT
/ CBS News
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Walmart said it is using billions of dollars in tariff revenue to lower prices as the company moves to appeal to consumers experiencing an affordability pinch due to higher inflation.The Arkansas-based retailer, which reported its earnings on Thursday, has received "substantially all" of the $2.9 billion in tariff refunds it was eligible for, executive vice president and chief financial officer John David Rainey said during Walmart's earnings call.Rainey said the company is directing that money toward improving customers' experiences by prioritizing investments in grocery and general merchandise. The push comes after Walmart in July cut prices on thousands of products, including beef, Coca-Cola and laundry detergent."We're investing heavily in price because customers need us to and because we believe it drives market share gains over time," Rainey said on Thursday.Walmart reported on Thursday that its operating income in the second quarter rose nearly 30% compared to the same time last year, a boost it attributed in part to tariff refunds. At the same time, the company reported the slowest growth in U.S. comparable sales in six years, sending its stock price down 9% in morning trading.Comparable sales in U.S. stores, which measure sales at stores open at least a year, along with online sales tied to those locations, rose 2.6% in the second quarter, compared to 4.1% in the first quarter.Where will tariff refund money go?Neil Saunders, a retail analyst and managing director at GlobalData Retail, said that with tariff money in its coffers, Walmart is likely to focus on price savings for essential items to maintain its competitiveness as an "Everyday Low Price" retailer.
