Wal-Mart CEO: Inflation Is Coming, So You Better Watch Out! (WMT)

Wal-Mart (NYSE: WMT) CEO Mike Duke said that inflation is affecting consumers purchasing power, as food and fuel prices rise. NEW YORK (MarketWatch) — Consumers' spending power has been affected In the face of rising fuel prices and other inflationary pressures, Wal-Mart Stores Inc.'s Chief Executive Mike Duke said on Wednesday.

“Our customers are running out of money, buying smaller pack sizes and less discretionary items near the end of the month,” Duke said The Wall Street Journal Viewpoints executive breakfast presentation in New York. “It shows greater pressure on consumers. Rising fuel price has been one of the factors that affect consumer spending. The end of paycheck cycle is pronounced among our core customers.”

“Inflation and fuel price have come into place” along with other economic pressures to hurt consumer spending, he said.

“Consumers have learned to pay attention to what they pay,” he said. “It's a form of (behavior) reset. Price transparency is becoming even more important.”

Shares of Wal-Mart closed at $54.69 yesterday.