Walmart

By design, EDLP constrains overt pricing power in core retail, and consolidated operating margins remain thin. However, mix shift toward retail media, marketplace services, and memberships adds latent pricing power because these services carry higher incremental margins and can sustain price increases without meaningful churn.

Advertising grew 46 percent globally in Q2 FY2026 (U.S. Connect +31 percent), suggesting long runway. Still, given competitive intensity and consumer price sensitivity in grocery, we view pricing power as moderate but improving over time.