Walmart (WMT) Under Fire: Electric Blankets Spark Safety Scandal

Retail giant Walmart faces backlash as electric blankets ignite consumer outrage—literally.

Three incidents reported—thermal comfort turned thermal threat.

Will this burn a hole in WMT's Q3 earnings? Probably not—Wall Street still loves a discount.

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Blankets Fires

The retailer has recalled MaxKare Electric Blankets, made by Chinese manufacturer Yumo from Walmart.com, after 34 reports of them overheating were received by the Consumer Product Safety Commission. This led to three people being burned and two fires.

The recall includes about 8,560 blankets which were sold in twin, full and queen sizes. The products were sold exclusively online by Walmart between June 2021 and November 2024 for between $27 and $80.

Walmart said that consumers should immediately stop using the recalled blankets and contact Yumo for instructions on how to properly dispose of the blankets.

‘Walmart and Sam’s Club are committed to the health and safety of our customers and members and to providing products that are SAFE and compliant, all supported by our health and wellness, product safety, and food safety professionals,’ the retailer said in a statement regarding the latest recall.

Listeria Hysteria

It comes only days after fears that a deadly listeria outbreak was linked to food sold at its stores.

According to federal health officials, three people died potentially as a result of eating ready-to-eat chicken fettuccine Alfredo products from Walmart and retail rival Kroger (KR).

In April, Walmart recalled celery sticks because of a potential listeria contamination. That was also found during random sampling by the Georgia Department of Agriculture.

The month before, the US Food and Drug Administration (FDA) labelled broccoli sold in bags at Walmart stores as ‘deadly’ due to potential listeria contamination.

Is WMT a Good Stock to Buy Now?

On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 1 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $109.71 implying an 10.94% upside.

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