U.S. Hardlines Retail Highlights From the Retail Bus Tour (WMT, TGT, AZO & KR)

Research evidence excerpt

U.S. Hardlines Retail Highlights From the Retail Bus Tour (WMT, TGT, AZO & KR)

Global Research

15 July 2026ab

U.S. Hardlines Retail Equities

AmericasHighlights From the Retail Bus Tour (WMT, TGT,

AZO & KR) Retailers, Broadline

Michael Lasser

Analyst

michael.lasser@ubs.com

Overall, the key messages from management teams (Walmart, Target, AutoZone, and +1-212-713 2440

Kroger) during the retail bus tour were largely consistent with the themes that emerged

Mark Carden

following 1Q results. The retailers broadly characterized the consumer environment as

stable, with spending patterns and underlying behaviors that have been largely mark.carden@ubs.com

unchanged in recent periods. +1-212-713 3218

Walmart noted that consumer trends remain similar to those observed at the end Dan Silverstein

of 1Q, with lower-income households continuing to face pressure from elevated Analyst

inflation, volatile fuel prices, and ongoing geopolitical uncertainty. At the same daniel.silverstein@ubs.com

+1-212-713 2459 time, Target highlighted the resilience of consumer demand, suggesting that

shoppers have remained engaged despite a challenging macroeconomic Sachin Verma

backdrop. Associate Analyst

sachin.verma@ubs.com

Importantly, the retailers consistently emphasized that value remains a primary +1-212-713 3492

consideration across all income cohorts. Consumers are increasingly focused on Mathew Rothway

maximizing purchasing power, reinforcing the importance of both offering and Analyst

calling to compelling value across assortments. mathew.rothway@ubs.com

+1-212-713 5000

Management teams also described the competitive environment as rational, with

pricing actions remaining measured and selective rather than broad-based. Joshua Bluestine