Walmart’s Second-Quarter Online Sales Grow by 37%

Walmart Q2

Walmart’s growth streak continued in its second fiscal quarter with a total revenue of $130.38 billion as opposed to analysts’ sales projection of $130.11 billion, and its eCommerce business had a pivotal role in it.

Image: Walmart | Store FrontThe retail giant reported that its online sales increased by 37% thanks to the strong growth in online grocery. It also attributed this growth to its four-day July sales event and NextDay delivery service which rolled out in May and is currently available to 75% of the U.S. population.

Walmart said its comparable store sales grew 2.8% and increased by 7.3% on a two-year stacked basis, which is the strongest in over 10 years.

More stores and delivery options

Walmart’s financial statement showed that it ended the quarter with more than 2,700 stores offering grocery pickup and more than 1,100 stores offering same-day delivery. The company said its omni-channel strategy makes it well positioned to provide customers more options for receiving their orders.

Furthermore, it said that it’s gaining market share in key categories, including food, consumables, health and wellness, and toys.

“We’re making progress to improve the fundamentals of our traditional eCommerce business. We’re lowering our variable costs per unit, improving gross margin and increasing the number of monthly active users. I’m also excited about the opportunity we have to expand our marketplace. We’ve quickly grown this piece of the business in recent years, and I know we can do even more as we look ahead.” – Doug McMillion, President & CEO, Walmart Inc.

McMillion added that the company is adjusting its earnings guidance for fiscal year 2020
between a slight decrease to a slight increase, compared to last year’s which reflected a low single-digit percentage decrease.

The retail giant has several things in the pipeline, one of which is a $1.2 billion investment to upgrade its logistics network in China.

What are your thoughts on Walmart’s second-quarter growth? Let us know in the comments section below or join our Facebook Group.

Avatar
For almost 10 years Dave has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant it was the opportunity to start UnderstandingE with Matt Ogborne showing the world how to utilize Magento as the Third Generation of Multi-Channel software. Dave also recently started a YouTube channel called the Manc Entrepreneur (click YouTube icon link below to watch Dave's videos) where he discusses all things eCommerce and entrepreneurship aimed to help young entrepreneurs get started on their own journey. When Dave isn’t working his main interests include, Technology, Cars and throwing himself off high things into water.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.