Walmart's fintech company, One, is now offering big-ticket loans through their stores, competing with Affirm. This move threatens the existing partnerships Walmart has with other financial institutions. One's ambition is to become a comprehensive financial platform, overtaking the roles of external partners in banking, lending, and payments. Walmart's plan is to grow its non-retail revenue sources, with One playing a crucial role in its finance expansion.
Producer prices rose less than expected in March, but inflation is still high, especially for services. Consumers are concerned and spending less on non-essential items. Credit card delinquency rates are up, but household finances are generally strong. Retail growth is expected to slow in 2024, and some retailers are seeing a decrease in demand. Overall, although PPI growth has slowed slightly, inflation remains a major issue affecting consumer spending and the retail sector.
Currently, manufacturers are reducing the size or quantity of products while maintaining or increasing prices. This practice, called shrinkflation, has drawn attention recently, with President Biden and Cookie Monster expressing their disapproval. A bill aims to empower the Federal Trade Commission to curb shrinkflation through regulations and legal actions. Consumers can combat shrinkflation by carefully observing changes in product sizes and considering alternative brands or retailers. By being mindful of their purchases, consumers can potentially reduce their grocery expenses.
