Walmart warns shoppers could face higher prices as fuel costs surge, tax refunds dry up
CFO John David Rainey says tax refund season ending will leave shoppers more exposed to rising fuel costs
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Hard-working Americans could soon face another blow at the checkout counter.
Retail giant Walmart issued a warning Thursday after its Q1 earnings report, signaling that rising fuel costs could soon hit consumers at the checkout counter as seasonal tax-refund boosts dry up and inflation outpaces wages for the first time in years.
"I think higher tax returns muted some of the pressure related to higher fuel prices and as we’re in a period of time right now where those tax refunds are largely not coming in, I think consumers are going to feel more of that pressure from higher fuel prices," Walmart CFO John David Rainey told CNBC.
Rainey said Walmart leadership is closely monitoring the economic headwinds: "It’s something that we’re keeping a close eye on."
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During Thursday morning’s earnings call, Rainey also highlighted a widening gap between income groups, noting that while wealthier households are "spending with confidence [in] many categories," lower-income Americans are becoming increasingly "more budget conscious" as they find themselves "navigating financial distress."
Customers shop at a Walmart store on May 13, 2026, in Chicago. (Getty Images)
High inflation has created financial pressure in recent years for many U.S. households, which are paying more for everyday necessities like food and rent. Price increases are particularly difficult for lower-income Americans because they tend to spend more of their paychecks on necessities and have less flexibility to save.
Energy prices rose 3.8% in April amid disruptions to Middle Eastern oil supplies tied to the Iran conflict, with prices up 17.9% over the past year. Gasoline prices increased 5.4% in April and are up 28.4% from a year ago.
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April’s 3.8% inflation rate marked the highest level in three years and the first time since 2023 that prices have outpaced wage growth.
Despite affordability pressures, Walmart reported strong top-line revenue numbers, with total first-quarter revenue climbing 7.3% to $177.8 billion. However, that growth fell below analyst expectations.
Walmart’s position comes amid broader changes in the retail landscape, where major companies are navigating shifting consumer loyalties, corporate transitions and political pushback.
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Amazon has surpassed Walmart as the world’s largest company by revenue, while competitor Target reported net sales growth of more than 6% compared to the previous year.
Walmart declined Fox News Digital’s request for additional comment.
FOX Business’ Eric Revell contributed to this report.