Sen. Elizabeth Warren stated that Walmart Inc. (NASDAQ: WMT) holds a patent for technology that could allow the retailer to charge different prices for the same item based on other products in a shopper's cart. The Senator cited a granted patent for smart carts that scan items as shoppers move through the store.

Surveillance pricing concerns

Warren described the potential for "surveillance pricing," noting that the patent's own example involves adjusting the price of mayonnaise once a customer scans tuna, inferring they are making tuna salad. Lindsay Owens, President of Groundwork Collaborative, characterized the patents as "a really scary place to look" during an appearance on "The Weekly Show with Jon Stewart."

Owens argued that the system could infer intent from basket composition to adjust prices accordingly. She highlighted that even questions asked by AI assistants, such as when a customer needs an item, could reveal urgency and influence final costs.

AI assistant impact on spending

Walmart CEO John Furner disclosed in August that customers using the retailer's AI shopping assistant, Sparky, spent 40% more per order than non-users. Usage of the tool rose 70% year over year. Owens attributed higher basket totals partly to the AI's ability to upsell and bundle items effectively.

Market reaction and rankings

Walmart shares fell 2.66% to close at $107.59 on Thursday, with extended trading showing a marginal decline of 0.03%. Benzinga edge rankings place Walmart's Momentum score in the 31st percentile and its Growth score in the 60th percentile. Walmart did not immediately respond to requests for comment.

Walmart Inc (NASDAQ: WMT) shares rose 2.60% to $108.85 on Thursday afternoon, buoyed by a strategic delivery expansion and favorable macroeconomic signals from the Federal Reserve.

The retail giant announced a partnership with Inspire Brands to integrate restaurant delivery services, beginning with Dunkin’ locations inside Walmart stores, directly into its digital platform.

Partnership Expands Delivery Ecosystem

The collaboration aims to leverage Walmart’s extensive store footprint and app infrastructure to broaden delivery offerings. By integrating popular restaurant brands, the company seeks to deepen customer engagement across its nationwide network.

Macro Tailwinds Support Retail

Broader market sentiment improved following dovish inflation commentary from Federal Reserve Governor Christopher Waller. U.S. Treasury yields pulled back, easing concerns about elevated interest rates and pressure on consumer discretionary spending.

Lower yields created a supportive backdrop for large-cap retail and consumer staples stocks as investors positioned for potential rate stabilization.

Post-Earnings Recovery

Thursday’s gains helped offset recent volatility following Walmart’s second-quarter earnings report released on Aug. 20. The retailer reported revenue of $187.9 billion, up 5.9% year-over-year, and adjusted EPS of $0.81, beating the $0.74 estimate.

Despite the top-line beat, shares had previously declined as investors focused on slowing core retail momentum. U.S. same-store sales growth dipped to 2.6%, the weakest pace in over six years.

What the Numbers Show

While global e-commerce surged 23% and advertising revenue jumped 38%, the divergence with the 2.6% same-store sales growth highlights a shift in consumer behavior. Management noted that lower- and middle-income consumers are making visible trade-offs due to persistent inflation and high fuel costs, prompting plans to reinvest tariff refunds into price reductions via more than 11,000 rollbacks.

Outlook and Guidance

Walmart raised its full-year EPS outlook to $2.80 to $2.87. However, cautious third-quarter adjusted EPS guidance of $0.62 to $0.64 reignited near-term growth concerns among investors.