Walmart sales under strain as US shoppers pull back

Sales at the US retail giant Walmart grew at their slowest pace for more than six years in the most recent quarter, suggesting American shoppers are under strain.

Walmart, which due to its size is well-placed to gauge consumers' mood, blamed the rising price of fuel.

Sales at comparable sites across the chain were up by 2.6%, excluding fuel, between May and July the company said.

Walmart said it would use up to $3bn of expected tariff refunds to lower prices in a bid to keep customers spending.

The rebate stems from duties the retailer paid after President Trump imposed a wave of tariffs on imported goods last year. Retailers are receiving refunds from central government after those tariffs were ruled unlawful.

Rival retailer Target recently said it had received $1bn in rebates, boosting its profits.

Walmart, the US's largest retailer, said the nearly $3bn in tariff rebate it anticipated would help it continue a programme of price cuts or "rollbacks" that it expanded earlier this year , external .

Walmart has leaned heavily on price cuts to retain customers, launching 11,000 of its so-called "rollbacks" across categories.