Today, Walmart released their earnings report for the 13-week period ended July 31, 2020. Notable highlights from the release include:
- Net sales in the US were up 9.3% year-over-year (YoY) to $93.3B
- Total revenue was up $7.4B YoY to $137.7B
- Walmart US ecommerce sales increased 97% YoY
- Walmart US ecommerce sales accounted for approximately 6% of Q2 net sales, around $5.5B
- Sam’s Club ecommerce sales grew 39% YoY
- International net sales were down 6.8% YoY
- Ecommerce sales accounted for 12% of total international sales
- Walmart incurred $1.5B in COVID-related costs
Global Ecommerce Growth
As a company that operates in the ecommerce space, we took particular note of Walmart’s online sales performance. Just this year, Walmart has announced Walmart Fulfillment Services, an integration with Shopify, and Walmart Plus – all indicators of Walmart’s growing ambition for their ecommerce presence. As COVID-19 impacted shopping in physical stores, Walmart’s online sales growth boomed around the globe.
Walmart Marketplace Ecommerce Net Sales:
- US: +97%
- Mexico & Central America: +217%
- China: +104%
- Canada: +215%
- United Kingdom: +98%
Online grocery sales were a significant contributor to online sales growth in each of the below markets. Pickup and delivery services experienced record-high sales, with approximately 3,450 stores allowing pickup and approximately 2,730 stores offering same-day delivery.
Key Takeaways for Sellers
Walmart’s online marketplace has been building momentum since it launched, but it’s rapidly gaining speed in 2020. We saw with Amazon that brands who entered the marketplace early were positioned to seize and grow a greater market share. As Walmart’s online marketplace matures, a similar outcome is likely.
In addition to general ecommerce growth, the current health crisis has also led to a surge in online grocery shopping. This is a fascinating space that’s likely to continue growing even after shopping in physical stores normalized again. You can learn more about the rapid rise of online grocery in our podcast episode with Chicory, a digital shopper marketing platform that specializes in the grocery industry.
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