Walmart Inc. (WMT) in Bentonville, Ark., is in the retail, wholesale, and other businesses worldwide. The company operates through Walmart U.S.; Walmart International; and Sam's Club. In comparison, Big Lots, Inc. (BIG) in Columbus, Ohio, is a home discount retailer in the United States. The company offers products under various merchandising categories that include furniture, seasonal, soft home, and food.
According to the Consumer Price Index, inflation hit 8.5% in the United States last month–its highest 12-month gain since 1981–due to a surge in gasoline prices tied to the Russia-Ukraine war. Therefore, discount retail store operators should witness strong demand because they offer a wide range of goods at prices lower than traditional retail outlets. Furthermore, because the economy is still reopening, discount retailers are expected to benefit not only from their online sales but from growing physical store-based sales. According to Research and Markets, the global retail market is expected to grow at a 7% CAGR through 2025. Therefore, both WMT and BIG should benefit.
