Walmart, the country's largest retailer by revenue, has raised its sales outlook fueled by consumers looking for deals. Compared to the start of the year, the consumer picture is looking up for Walmart. The retailer's faster productivity growth has resulted in higher profits, benefiting both the stock market and the fight against higher inflation. Jeremy Siegel, a finance professor at the Wharton School of Business, stated that real increases in productivity and growth have improved profits, allowing the stock market to hold its own despite higher rates. The strong economic reports and bounceback in productivity have also helped to keep inflation in check.

Walmart's success can also be attributed to its expanding selection of groceries in stores and strong online sales. Despite a long stretch of inflation, the retailer has kept prices low, attracting cash-strapped consumers who notice the price gaps compared to other retailers. Walmart has regained its operational efficiency, thanks in part to the leadership of its experienced CFO, John David Rainey. The company's solid sales growth has led to an increase in full-year EPS guidance.

Overall, Walmart's ability to provide value to customers through its low prices and convenience has contributed to its improved sales outlook. The retailer's performance in the second quarter outshined its competitor, Target, with higher customer traffic, comparable sales, and e-commerce sales. Walmart's transformation over the years has allowed it to appeal to a wider customer base, including those with higher incomes who value convenience.

Source: Wall Street Journal, CNBC, Yahoo Finance