Despite the retail sales drop, big retailers Walmart and Home Depot are doing pretty well, according to their latest earnings release.
Retail sales went down in July, according to Tuesday’s report from the U.S. Census Bureau.
Jharonne Martis, director of consumer research at Refinitiv, says consumer outlook seems to be tied to COVID-19 case numbers and vaccination rates. Cases are rising, and consumers have kept their hands in their pockets. However, two big retailers, Home Depot and Walmart, who reported earnings Tuesday, are doing well.
Walmart, the biggest company in the world by revenue, beat Wall Street expectations with revenues of $141 billion, while analysts estimated $137 billion. CEO Doug McMillon credits their omnichannel strategy.
McMillon says cloud-powered checkout is benefiting the business, bringing up “checkout with me” where you pay with your phone, and “scan and go” where you just scan a product to buy it, then leave.
Meanwhile, Home Depot also beat Wall Street expectations with revenues of $41.12 billion, while analysts estimated $40.79 billion.
It said sales in its paint, hardware, and garden departments decreased, while sales in its kitchen, bath, and lumber departments grew the most.