Walmart Warns of Price Hikes Despite E-commerce Profitability
In the first half of 2025, Walmart—the largest retailer in the United States—announced that it had achieved e-commerce profitability for the first time in its history. However, around the same time, the company also issued a warning about unavoidable price increases due to trade-related tariff burdens, raising concerns among consumers and investors.
🛒 First E-commerce Profitability Achieved
Walmart reported its first profitable performance in the U.S. and global e-commerce sectors for the 2025 fiscal year.
As of Q1, e-commerce sales soared 22% year-over-year, significantly contributing to overall performance improvements[4][5].
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Successfully narrowing the gap with Amazon
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Enhanced digital capacity through omnichannel strategy, AI automation, and advanced logistics
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Strengthened presence in the global retail market[7][12]
This innovation signifies more than performance—it shows that Walmart is transitioning into a dominant player in the digital commerce ecosystem.
⚠ Price Hike Warnings Despite Strong Earnings
Despite exceptional earnings, Walmart warned that price increases on certain products will be inevitable starting late May 2025[6][8][10][14].
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Cause: Persistently high U.S.-China tariffs
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Although both countries temporarily reduced tariffs from 145% to 30%,
→ CFO John Rainey: “Even with tariff relief, we can't absorb all the pressures”
→ CEO Doug McMillon: “We can’t avoid price hikes for hundreds of millions of customers”
📈 Causes and Impact of Price Increases
Walmart has long maintained a low-price strategy, but now faces growing price pressures due to external factors.
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Tariff burden: About one-third of products sold in the U.S. are imports, many from China
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Supply chain instability: Rising costs for raw materials and logistics
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Walmart’s move is likely to spread across other major retailers,
→ raising broader inflationary pressure on U.S. consumer prices[10][14][18].
🔧 Strategy to Maintain Competitiveness
Walmart announced plans to minimize price hikes and absorb some of the tariff-related costs.
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Short-term: Accept partial losses in profitability
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Long-term: Maintain market share and competitive edge through
→ AI-powered logistics, automation, and digital expansion[2][7][12]
✅ Summary
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Walmart reported first-ever e-commerce profitability in 2025[4][5]
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Nevertheless, tariff burdens prompted a warning for price hikes from late May 2025[6][8][10][14]
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These hikes could extend to other retailers,
→ potentially fueling U.S. consumer inflation[10][14][18] -
Walmart will continue its low-price strategy, while strengthening innovation and efficiency[2][7][12]
📚 References
[1] https://kr.investing.com/news/company-news/article-93CH-1437142
[2] https://contents.premium.naver.com/ilab/insights/contents/250410080906537lv
[3] https://marketin.edaily.co.kr/News/ReadE?newsId=05415286642169248
[4] https://earnings.kr/news/8TCwmnN2hSqgCVbQkx9q
[5] https://kr.investing.com/news/transcripts/article-93CH-1481326
[6] https://www.sedaily.com/NewsView/2GST4Q36E7
[7] https://bree-1230.tistory.com/entry/Walmart-2025%EB%85%84%EC%97%90%EB%8F%84-%EC%83%81%EC%8A%B9%EC%84%B8-%EC%A7%80%EC%86%8D
[8] https://zdnet.co.kr/view/?no=20250516090403
[10] https://www.yna.co.kr/view/AKR20250515181200071
[12] https://kr.investing.com/news/analyst-ratings/article-93CH-1449148
[14] https://news.nate.com/view/20250516n06572
[18] https://www.ytn.co.kr/_ln/0104_202505160635093598
