Eurodollar University Walmart says "Our Customers Are Running Out of Money"
Feb 23, 2026
Steve Van Metre, macro commentator who shares market observations and consumer anecdotes. He breaks down Walmart’s warning about a hiring recession. Discussion covers higher-income shoppers trading down, which customers may be running out of money, and how falling savings and real income declines amplify consumer stress.
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Walmart Flags Hiring Recession Risk
- Walmart warns a hiring recession is now materially affecting consumer demand despite prior strength from higher-income shoppers trading down.
- CFO John David Rainey said hiring recession and weak labor-market signals make Walmart cautious about 2026 earnings growth.
Rich Shoppers Can't Fully Replace Core Customers
- Walmart's traffic from wealthy shoppers isn't enough to offset falling spending among its traditional lower- and middle-income customers.
- Steve Van Metre noted even a local Walmart felt unusually slow in the evening, signaling weakening core demand.
Local Walmart Felt Unusually Slow One Evening
- Steve described visiting a local Walmart at 5:30 PM and finding it oddly slow despite usual evening traffic.
- He used that personal observation to illustrate broader demand weakness at even top retailers.