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Walmart CEO Says Company Saw Surge In Television, Video Game Purchases As Stimulus Checks Kicked In

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Marlo Safi Culture Reporter
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Large retailers like Walmart and Target reported a boost in April earnings as people cashed in their stimulus checks, Reuters reported, and a lot of the money is being used to buy everything from adult-sized bikes to video games.

While large chains like Walmart have been able to remain open amid shutdowns because they sell groceries and other essentials, these companies are also seeing a boost in non-essential items like televisions and video games, largely attributable to the extra cash from the relief payment that around 150 million Americans received from the federal government to offset financial strain due to coronavirus shutdowns, according to Reuters.

Customers wait in line to enter a Walmart store on May 19, 2020 in Chicago, Illinois. (Photo by Scott Olson/Getty Images)

Customers wait in line to enter a Walmart store on May 19, 2020 in Chicago, Illinois. (Photo by Scott Olson/Getty Images)

Both companies saw a 10% surge in quarterly comparable sales, which was influenced by the increased demand for non-essential items at the end of April, when Americans began receiving their checks. (RELATED: New York Man Arrested For Stealing More Than $12,000 In Coronavirus Stimulus Checks From Mailboxes)

“Call it relief spending, as it was heavily influenced by stimulus dollars,” Walmart Chief Executive Doug McMillon said on Tuesday according to Reuters.

Walmart saw a jump in sales of clothing, televisions, video games, sporting goods, adult-sized bikes and toys. Similarly, Target saw an increase in spending on discretionary goods following the distribution of the checks, Market Watch reported.

Before the checks were issued April 15, Walmart didn’t see “as much demand” for discretionary goods, a spokesman told Market Watch. 

People line up to get into Target during the coronavirus pandemic on May 2, 2020 in New York City. COVID-19 has spread to most countries around the world, claiming over 244,000 lives with over 3.4 million infections reported. (Photo by Cindy Ord/Getty Images)

People line up to get into Target during the coronavirus pandemic on May 2, 2020 in New York City. COVID-19 has spread to most countries around the world, claiming over 244,000 lives with over 3.4 million infections reported. (Photo by Cindy Ord/Getty Images)

Best Buy also saw increased demand for discretionary goods, like computing and gaming equipment. 

“Like many other retailers, we saw sales benefit during the last three weeks of the quarter as customers undoubtedly chose to spend some of their government stimulus money on the products and services we provide,” Corie Barry, the company’s CEO, said Thursday according to Market Watch.