Looking at the latest financial reports of retail giants to see the changes in American consumer behavior

It is learned that this week, US retail giants Walmart, Target, Home Depot and Lowe's all released their first-quarter 2022 financial reports and provided their respective trends in the ability of US consumers to withstand high inflation and changes in consumer behavior.

In late April, Amazon released its slowest quarterly revenue growth ever and forecast a disappointing performance for the next quarter, sending a pessimistic signal for the U.S. retail industry, but Wall Street still has high expectations for Walmart and Target.

However, after reporting earnings this week, Walmart and Target reported lower profits than analysts and investors expected. Walmart closed down 11.4% on Tuesday, its biggest one-day drop since its founding in October 1987, while Target shares fell to their lowest level in 35 years.

Still, Home Depot and Lowe's have stood out among retailers in recent weeks, in large part because Americans are experiencing different economic fluctuations depending on their income levels.

Here's what Walmart, Target, Home Depot and Lowe's said about the state of the American consumer.

Walmart

Walmart said that for most consumers, price sensitivity has increased significantly. When gas and grocery prices rise, consumers will forgo buying new clothes and other daily necessities, or switch to cheaper brands or smaller quantities of goods. On the other hand, some consumers are seeing an increase in demand for patio furniture and new game consoles.

Meanwhile, demand for items such as luggage, dresses and makeup is rising as more Americans plan vacations and attend weddings.

Target

Target said American consumers have become more resilient and have new priorities. In the first quarter, consumers bought more decorations and gifts for Easter and Mother's Day celebrations, and sales of children's toys soared. They also bought fewer items such as bicycles and small kitchen appliances as they booked flights and planned travel.

Home Depot

Home improvement retailer Home Depot said it is finding that more than 90% of its DIY product shoppers own their own homes, and as home prices continue to rise, consumers are more willing to remodel their homes and are switching from gas-powered lawn mowers to more expensive battery-powered options.

Lowe’s

Lowe's CEO Marvin Ellison said rising home prices, aging housing inventory and a persistent housing shortage are the main drivers of Lowe's business. Consumers buying DIY products account for about 75% of Lowe's sales, a higher proportion than its rival Home Depot.

However, consumers are starting to feel the pinch from rising energy prices, and Lowe's customers are buying battery-powered landscaping tools, lawn mowers and more energy-efficient washing machines.

Editor✎ Ashley/

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