By bizn_fun 
While tariffs have raised prices for items like electronics and toys, the retailer’s scale has allowed it to weather the import taxes better than some rivals, said David Silverman, a retail analyst at Fitch Ratings.
“Walmart has successfully found ways of mitigating the impact of tariffs through vendor negotiations and its own supply chain flexibility,” Mr Silverman said.
Costco and Amazon, he said, are also poised to continue winning out in a “choppy, volatile” environment in the retail sector. Similar to Walmart, the companies’ scale and infrastructure will help them keep prices low and entice cash-strapped shoppers.
In October, Amazon reported a 13% jump in sales from the previous year, fuelled in part by strong consumer spending online.
“That’s obviously tough news for a number of smaller retailers out there that may not have the same capabilities to invest and strength their position,” Mr Silverman said.
Walmart’s stronger-than-expected earnings and rosy holiday outlook stand in contrast to recent reports from rivals in the retail sector, including Target and home improvement retailers Home Depot and Lowe’s.
Target on Wednesday reported a drop in quarterly sales. The retailer, which has grappled with stagnant sales for about four years, also warned investors its profits will be lower than earlier thought.
Target’s challenges are “predominantly company-specific”, Mr. Silverman said. Shoppers have curtailed non-essential spending, while backlash over diversity policies and inventory issues have added to Target’s woes.
Home Depot and Lowe’s, two leading home improvement retailers, both slashed their full-year profit outlooks this week, citing weak consumer spending and a sluggish housing market.