E-commerce drives Walmart’s growth each quarter.
Driven overwhelmingly by growth in its e-commerce business, comparable sales in the US business of Walmart Inc. rose 6.4% in the company’s third quarter. While Walmart’s online business continued to operate at a loss, C. Douglas McMillon, president and chief executive officer, said the e-commerce business is “just getting started.”
Walmart net income in the third quarter ended Oct. 31 was $5.14 billion, equal to $1.81 per share on the common stock, up 56% from $3.29 billion, or $1.16 per share, a year earlier. Net sales were $133.75 billion, up 5% from $126.98 billion in the third quarter of 2019.
Adjusted operating income in the third quarter was $5.8 billion, up 23% from $4.7 billion the year before.
Walmart attributed the 6.4% gain in comparable store sales to numerous key categories, including food. Meanwhile, US e-commerce sales jumped 79% during the quarter, contributing about 570 basis points to comparable sales, or almost 90% of the comparable store growth.
The impact of online shopping on Walmart during the third quarter was emphasized by Mr. McMillon in a Nov. 17 conference call with investment analysts.
You may also like:
Food security in emerging nations: issues and remedies
Are drinks the secret to increasing cannabis use among consumers?
Managing the lack of labour for mushroom picking
“With the outbreak of COVID-19, the retail world clicked to a fast-forward, and our ability to adapt quickly has been crucial,” he said. “Changes in customer behavior have accelerated the shift to e-commerce and digital. We were well positioned to catch and ride these waves given our previous work and investments. Our e-commerce and omnichannel penetration continue to rise, accelerating trends by two to three years in some cases. We’re convinced that most of the behavior change will persist beyond the pandemic and that our combination of strong stores and emerging digital capabilities will be a winning formula. Customers will want to be served in a variety of ways, and we’re positioned to save them money, provide the variety of product choices they’re looking for and deliver the experience they choose in the moment.”