Walmart (NYSE: WMT) topped analysts' second-quarter expectations as higher-income shoppers chose the retail behemoth for low-priced essentials. While the company continues to eat up more share of the grocery market, Walmart must first sell through its surplus inventory while contending with inflation's effect on consumer spending.

As high inflation reshapes shopping behavior, Walmart's discount prices have lured higher-income shoppers. Focused primarily on lower-priced food and essentials, these more affluent customers boosted Q2 sales numbers remarkably.

According to Walmart's CFO, John David Rainey, roughly 75% of Walmart's market share gains in food were from customers with annual household incomes of $100,000+. Indeed, Walmart continues to eat up more share of the grocery market, as noted in its second-quarter earnings release. 

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Source Fool.com