Walmart’s physical stores are transitioning to “shoppable fulfillment centers.” That’s according to Tom Ward, Walmart’s new chief U.S. ecommerce officer, who added, “And if the store acts like the fulfillment center, we can send those items [to customers] the shortest distance in the fastest time.”
The company is investing heavily in its online operations. Pandemic-driven sales spiked in 2021 and predictably cooled in 2022. The company’s ecommerce revenue growth increased by just 1% in fiscal Q4 2022 (ended Jan. 31) compared to the previous quarter.
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Walmart discount stores, Supercenters, Neighborhood Markets, and Sam’s Club warehouse membership clubs are all part of the company’s global footprint.
Walmart depends increasingly on its enormous network to expand ecommerce, using its stores as delivery drone launch pads and departure points for direct-to-fridge drop-offs. The company will soon start packing and delivering goods from third-party sellers.
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Walmart’s ecommerce sales in fiscal year 2022 (ended Jan. 31) were $47.8 billion, up 11% from 2021. Walmart is divided into three business segments: Walmart U.S., Walmart International, and Sam’s Club. Walmart U.S., which runs retail locations in all 50 states and Puerto Rico, is the company’s largest segment in terms of revenue.
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Despite its progress, Walmart’s ecommerce sales trail Amazon’s. Insider Intelligence estimates Amazon’s U.S. ecommerce product sales in 2022 will total roughly $408 billion. In fiscal 2022 (ended Jan. 31), Walmart’s U.S. ecommerce sales were $47 billion — one-tenth of Amazon’s.
Amazon’s fastest-growing categories — groceries, household goods, toiletries — follow a broader retail trend of consumers purchasing those goods online.
via https://www.aiupnow.com
Adel Boukarroum, Khareem Sudlow
