Walmart is grappling with challenges amid the ongoing trade war, notably marked by the company's decision to raise prices on non-grocery items such as electronics and toys. The tariff increases on Chinese imports have pressured retailers relying on extensive global supply chains, with Walmart announcing these changes in response, as highlighted by the Financial Times.
Despite Walmart's higher stock valuation compared to Amazon, its growth and profit potential are considered lower, possibly placing it at a disadvantage in navigating these economic headwinds. While Walmart's stock is priced more steeply, it contrasts with the company's perceived future performance, creating challenges in justifying its market position during these tensions.
In response to these ongoing pressures, Walmart is implementing strategic solutions such as adjusting sourcing practices and opening more Sam’s Club stores to cater to value-conscious consumers. This adaptability, along with Walmart's significant scale and strong supplier relationships, may provide some resilience against the impact of the trade war, according to reports by CNN.