Walmart may have started out as a retailer geared to budget-sensitive consumers, but its customer base is continuing to grow, thanks to more affluent shoppers.

The retailer saw share gains in new shoppers across income levels mainly led by upper-income households, which make more than $100,000 in annual income, Walmart officials said during an earnings call on Tuesday.

Walmart in a previous earnings call had also highlighted the rise in its higher income shoppers.

"Walmart has made gains among higher-income consumers off the back of its promise that it is an everyday low price retailer where consumers can maximize their budget and get bang for their buck because all income groups, whether they be low income, middle income or high income, have faced the prospect of punishing inflation over the past couple of years, especially in food," Neil Saunders, a retail analyst at the research and analytics firm GlobalData, told USA TODAY.

All consumers are looking for savings

While higher-income wage earners can absorb more of the price increases into their budgets than lower-income groups, "they still don't like to have to spend a small fortune on food and groceries. They still get sticker shock from seeing those things," he said.

Saunders said he thinks that once affluent shoppers have given Walmart a try to save money, "I think sometimes they've been pleasantly surprised because the Walmart of today is not quite the same Walmart of 10 or 20 years ago. It's still low price, but it has a more sophisticated offering. The stores look better. The customer service is better.

"So they've gone there for the low prices and enjoyed that, but they've kind of stuck around because they've said 'Actually, this isn't so bad,'" Saunders said.

Some stigma is gone from shopping at Walmart

Saunders said a stigma that may have previously existed among some shoppers when it came to shopping at Walmart has disappeared.

"The honest truth is that a lot of the things that Walmart sells are sold elsewhere," he said. "Why would you pay over the odds for exactly the same product just because you're being sniffy about the place where you're buying it? It just doesn't make a lot of sense."

Shoppers can also make purchases and get Walmart's low prices without ever setting foot in a store with Walmart's delivery and pick-up options, which the retailer has invested in heavily, Saunders said.

Affluent shoppers are mostly buying groceries at Walmart

Saunders said he continues to expect Walmart to gain more higher-income consumers, even with inflation moderating a bit, because people's budgets are still under pressure.

The new more affluent customers are coming to Walmart primarily for the low food and grocery prices, Saunders said.

"Walmart's had a little bit more difficulty to get some of those higher-income consumers to cross the aisle and shop non-food products like apparel and home," he said.

Walmart saw gains across categories

In the third quarter ended Oct. 31, Walmart's U.S. comparable sales rose 5.3%, beating analysts estimates of a3.61% increase, according to data compiled by LSEG and reported by Reuters.

It saw sales growth across categories including the general merchandise segment, which has suffered over the last two years due to inflation. The retailer also saw a boost from sales and home goods, Reuters reported.

Walmart also had comparable sales growth in its health and wellness category, helped by demand for weight-loss drugs.

The retailer's focus on household and grocery products has insulated it against a slowdown in spending on non-essentials, helping the company post better-than-expected quarterly results in the first half of the year, Reuters reported.

As purchasing power increases, Reuters reported that analysts expect upper and middle income consumers to be the primary drivers of a shift back to spending on non-essential or nice-to-have merchandise.

"I do think Walmart has been capturing a more affluent consumer,'' Telsey Advisory Group analyst Joseph Feldman told Reuters. "I think the Walmart Plus membership has helped drive that and the company continues to reflect good strength in their online business and their pick up and delivery."

Reuters contributed to this report.

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.