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Thu, 21 May 2026

Thu, 21 May 2026 Walmart warns US shoppers are cutting spending as higher petrol prices bite

The retail giant said it expects customers to cut back in the coming months due to higher pump prices.
Walmart warns that higher petrol prices are leading US consumers to cut back on other spending, with sales growth expected to slow significantly in the next few months. The retail giant attributes this slowdown to the rising cost of living caused by the conflict in Iran, which has led to a surge in wholesale oil prices and pushed up petrol costs. According to motoring group AAA, the average price of a gallon of petrol has reached $4.56 (£3.40), up from $3 when the war began. Walmart's finance boss John David Rainey says that while tax refunds have so far offset some of the pressure on household budgets, this effect will soon wear off, leaving consumers feeling more strain. The company is expecting sales growth to slow to between 4% and 5% in the next quarter, down from 7.3% in the previous period.