Speaking on CNBC Squawk Box, Doug McMillon, CEO of Walmart, noted that budget-challenged shoppers are still impacted by inflation.  He stated, “There is sustained pressure in some categories, and this is something customers are having to deal with as we approach Christmas.”

McMillon confirmed trends reported in recent weeks that shoppers are becoming more selective, purchasing only essentials, delaying purchase of discretionary items including electronics in order to purchase staples.

Walmart derived 75 percent of its market share gain in grocery from shoppers with an annual household income of more than $100,000 over the past two quarters, suggesting that even consumers with moderately high earnings are seeking value.

Even within the Walmart range of foods offered, consumers are opting for lower-priced protein, favoring hotdogs and ground meat over more expensive beef cuts.

Walmart has guided a comparable sales growth of 3.0 percent, including fuel, for the fourth quarter, below the previous consensus expectation of 3.5 percent.