In this file:
· Walmart Grocery Drives 74% E-Commerce Growth
· Walmart Crushes Earnings; eCommerce Soars 74 Pct
· Walmart says it will discontinue Jet, which it acquired for $3B in 2016
Walmart Grocery Drives 74% E-Commerce Growth
By Mike Troy, Progressive Grocer
A stunning 74% increase in e-commerce sales and a 10% same store sales increase at Walmart U.S. drove a record-setting first quarter performance for the company.
Stock-up behavior was clearly evident in the results Walmart reported for the quarterly period ended April 30. Total sales for Walmart’s 4,753-store U.S. division increased by $8.4 billion, or 10.5%, to $88.7 billion. Operating profits for the division increased 3.9% to $4.3 billion.
Same store sales at Walmart’s U.S. stores surged 10% but a major change in shopper behavior was evident in the composition of the increase. Walmart said transaction volume declined 5.6%, but average transaction size increased 16.5%. Those figures are consistent with behaviors observed by other retailers who have noted shoppers consolidated trips during March and April but bought substantially more per trip.
Sam’s Club experienced the opposite situation with transaction...
Walmart Crushes Earnings; eCommerce Soars 74 Pct
May 19, 2020
Walmart announced its first-quarter earnings this morning (May 19), crushing even the highest expectations for in-store as well as eCommerce revenue. In-store comps were up 10 percent over 2019 and eCommerce spiked 74 percent as consumers stocked up on essential and nonessential goods.
By Walmart’s fiscal calendar, the quarter began Feb. 1 and ended May 1, which encompasses the beginning of the pandemic crisis and stay-at-home orders as well as the beginning of the recovery. Analysts had forecasted high numbers from the chain, but the eCommerce spike blew away even the highest expectations. Even the company’s announcement that it will suspend earnings guidance for the end of the year had an eCommerce angle.
“The decision to withdraw guidance reflects significant uncertainty around several key external variables and their potential impact on our business and the global economy, including: the duration and intensity of the COVID-19 health crisis globally, the length and impact of stay-at-home orders, the scale and duration of economic stimulus, employment trends and consumer confidence,” said Brett Biggs, Walmart Inc. chief financial officer, in the earnings announcement. “Our business fundamentals are strong, and our financial position is excellent. Customers trust us to deliver on our brand promise, and I’m confident in our ability to perform well in most any environment. While the short-term environment will be challenging, we’re positioned well for long-term success in an increasingly omni world.”
The eCommerce increase came from grocery sales and Walmart.com. The company has been scaling back its Jet.com business...
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Walmart says it will discontinue Jet, which it acquired for $3B in 2016
Ingrid Lunden, TechCrunch
May 19, 2020
So much for Walmart’s big and expensive effort to take on Amazon with a digitally-native brand. Amid the coronavirus crisis and its impact on the retail industry, today the retail giant quietly announced in its quarterly report that it would be discontinuing Jet.com, the online-only marketplace that it acquired when it was just over one year old for $3 billion (plus $300 million in earn-outs over time), as it struggles to bring its e-commerce operations into that black after reportedly seeing a loss of $2 billion in the division in 2019 and shifting how to deliver its e-commerce strategy: by betting on giant stores, rather than online warehouses, as the hubs of its online delivery model.
Jet.com’s fate was disclosed as part of a Walmart’s Q1 earnings report, in which the company said it saw growth of less than 10% in its core US market, and said that it would be withdrawing guidance for fiscal 2021.
The company tried to put a positive spin on the news...
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