Walmart Gains Ground as Tariffs Pressure Retail Rivals

Walmart is widening its lead over competitors as tariffs, inflation pressures and tighter household budgets reshape U.S. retail.

The company has strengthened its position by leaning on its size, expanding digital operations and building higher-margin businesses that help offset cost pressures, according to a Reuters report Tuesday (May 19). The result is stronger growth than many peers at a time when retailers are navigating a tougher consumer environment.

Walmart’s investments in eCommerce capabilities, loyalty offerings and operational scale have reportedly helped it maintain pricing advantages even as tariffs drove up costs across retail. The company posted 4.7% sales growth in the fiscal year ended Jan. 31, outperforming several major rivals. Target reported declining sales, Kroger remained roughly flat and Albertsons posted slower growth. Reuters reported that Walmart’s stock has climbed about 50% since tariff policies introduced in April 2025 intensified pressure on retail margins.

Analysts told Reuters Walmart’s large footprint has become a competitive asset. The retailer’s buying power allows it to negotiate supplier terms more effectively and preserve low prices on everyday goods. Reuters also reported that Walmart held operating margins nearly steady last year at 4.2%, despite tariff-related disruptions.

Another driver is the company’s changing business mix. Walmart’s advertising operations and membership programs reportedly now contribute a much larger share of operating profit than they did several years ago. Those higher-margin businesses help support lower-margin retail categories while giving Walmart additional flexibility during periods of economic pressure.

Digital investments made years earlier are also paying off. Walmart’s online sales climbed 24% during the last fiscal year to more than $150 billion, accounting for more than one-fifth of total revenue. The company’s store network has become a fulfillment advantage, particularly in grocery delivery.

Additionally, PYMNTS Intelligence research found Walmart continues to dominate essential spending while Amazon captures more discretionary purchases. Walmart has also expanded local product assortments to appeal to cost-conscious shoppers and is remodeling hundreds of stores to strengthen digital fulfillment and omnichannel shopping. Research further shows financially stressed consumers increasingly turn to Walmart for grocery and retail purchases, underscoring the company’s position as households continue recalibrating spending priorities.