Online sales push Walmart to 2.5% revenue growth
US retailer hails 41 per cent uplift in e-commerce as Q3 figures beat expectations
A strong growth in online grocery business led to a 41 per cent increase in ’s e-commerce sales in the third quarter, the US retailer and owner of the UK’s Asda supermarket chain reported.
Walmart’s online sales surged 43 per cent a year ago and were up 37 per cent last quarter.
Total revenue increased by a better-than-expected 2.5 per cent to $128.0bn (£99.6bn €116bn), from $124.89 billion a year ago, while Walmart US comp sales increased on a two-year stacked basis by 6.6 per cent.
Market share gains in the business were led by food and consumables, including fresh produce, Walmart said.
Walmart’s operating income in the US increased 6.1 per cent but declined 5.4 per cent, or 4.1 per cent in constant currency thanks in part to a non-cash impairment charge for Walmart International.
Meanwhile, net sales at Walmart International were $29.2 billion, an increase of 1.3 per cent.
Excluding currency, net sales were $30.2 billion, up4.8 per cent. The inclusion of Flipkart and strength in Walmex and China were partially offset by softness in the UK.
Doug McMillon, president and CEO of Walmart, also highighted record sales in India during the Big Billion Days event.
McMillon said: “We are prepared for a good holiday season. Our integrated offering with stores and e-commerce delivers value and convenience for our customers. Our associates are working hard to ensure we succeed – one customer, one interaction at a time."
Walmart also announced “Delivery Unlimited”, a grocery delivery membership option, to 1,400 stores in the US and launched InHome Delivery in three US cities covering more than one million customers.