Walmart logs 43% growth online, driven by its marketplace strategy and international growth
Ecommerce sales at Walmart have grown by a whopping 43% in the past year, helped along by its online marketplace booming thanks to technology investment and brand partnerships.
According to its latest results, the international titan of retail saw third quarter revenues across the business growing by 2.4% , with ecommerce up 43%.
The company attributes this to making millions more items available for free two-day shipping and the ability to facilitate returns of these items at our over 4,700 US locations, via its marketplace and stores.
This focus on ecommerce and marketplaces is also seeing results in other territories, with Walmex in Mexico continuing to be strong with comp sales of 5.4% for the quarter. The retailer has also invested heavily in digital in Mexico, launching a new digital platform called Cashi, which provides customers with a secure digital payment option on their mobile phone. Walmex is also planning to further help the unbanked with a Semanitas product that fits well within the company’s Bodega Aurrera business. Walmex is also helping reach customers that lack access to high speed internet with eCommerce kiosks in stores.
In China, comp sales grew 2.2% led by momentum in fresh food. The retailer’s members continue to love Sam’s Club – Walmart’s wholesale arm. China is a leading source of retail growth in the world and Walmart continues to grow through our partnership with JD.com, using small urban fulfilment centres to meet the everyday needs of families. Walmart also now has more than 10 million users of its Scan & Go app, through the Tencent WeChat platform.
Turning to Canada, comp sales increased 2.5%, led by good results in food. According to Nielsen Walmart in Canada gained market share in certain categories, including fresh foods.
In eCommerce, the retailer’s Canadian arm delivered net sales growth of greater than 20%, increased the number of SKUs available on marketplace and added new stores that offer online grocery. We also opened a new dedicated fulfillment centre that will provide capacity to manage growth as well as to better manage costs.
In the UK, comps of 2% marked the sixth consecutive quarter of growth and online grocery sales outpaced the market, according to Kantar. Additionally, the proposed merger of Asda and Sainsbury’s is still on-going, with the latest statement from the competition authorities was in-line with expectations and the company will continue to proactively work through the process with the CMA.
“As you can see, there’s a pattern here – our company is moving faster and we’re accelerating innovation. We’re creating a business model that functions as an ecosystem with the customer at the centre. Collectively, we operate through the lens of our four strategic objectives: make every day easier for busy families, change how we work, operate with discipline and use trust as a competitive advantage. As we transform the business, we’ll continue to filter our decisions through these priorities.”
– Doug McMillon: President & CEO, Walmart Inc