Overseas activities keep Walmart's growth alive | RetailDetail

Overseas activities keep Walmart's growth alive

Mixed feelings for Walmart: the world's largest supermarket chain saw its worldwide profit and turnover rise, but its American sales went down – for the ninth quarter in a row.

International sales went up 16.2% to 30.1 billion dollar, but in home market USA like-for-like sales went down 0.9%. Walmart's total turnover went up 5.5% to 108.6 billion dollar (75.6 billion euro).

US economy poses problems

The US are still accounting for 62% of worldwide turnover, but the economy in the States poses a serious problem: unemployment figures are high and consumer confidence is low, meaning that consumers watch their expenses. A recent survey showed that Americans no longer see Walmart as the cheapest supermarket in the US – a perception change that is very unwelcome for the market leader in these times of crisis.

Walmart did realise a profit growth of 2.1% in the US through cost cuts and improved efficiency, but its international profit growth was a lot higher – peaking at +5.7% or 3.8 billion dollar. Profit per share was 1.09 dollar – 12 cents higher than the year before and 1 cent higher than what analysts had expected. For the whole financial year, Walmart raised its profit forecasts to 4.51 euro per share, significantly more than the 4.18 of last year.



Mixed feelings for Walmart: the world's largest supermarket chain saw its worldwide profit and turnover rise, but its American sales went down – for the ninth quarter in a row.

International sales went up 16.2% to 30.1 billion dollar, but in home market USA like-for-like sales went down 0.9%. Walmart's total turnover went up 5.5% to 108.6 billion dollar (75.6 billion euro).

US economy poses problems

The US are still accounting for 62% of worldwide turnover, but the economy in the States poses a serious problem: unemployment figures are high and consumer confidence is low, meaning that consumers watch their expenses. A recent survey showed that Americans no longer see Walmart as the cheapest supermarket in the US – a perception change that is very unwelcome for the market leader in these times of crisis.

Walmart did realise a profit growth of 2.1% in the US through cost cuts and improved efficiency, but its international profit growth was a lot higher – peaking at +5.7% or 3.8 billion dollar. Profit per share was 1.09 dollar – 12 cents higher than the year before and 1 cent higher than what analysts had expected. For the whole financial year, Walmart raised its profit forecasts to 4.51 euro per share, significantly more than the 4.18 of last year.



Questions or comments? Please feel free to contact the editors


Adidas wants to strengthen bond with small retailers

15/07/2018

German sportswear giant Adidas says it wants to strengthen its bond with small-scale retailers after they claimed Adidas is too aggressive in pushing its web shop, especially as they feel the brand is favouring large international chains as well.

Several candidates to take over Men at Work

12/07/2018

There are several takeover candidates for both the Dutch and the Belgian stores of the bankrupt clothing chain Men at work. The curator is confident an agreement should be reached today in Belgium.

Burberry sales increases thanks to new strategy

11/07/2018

The new strategy of the British fashion brand Burberry starts to render: the company had a 3% increase of revenue in their own stores last quarter. In total, Burberry has now a revenue of 479 million pounds (520 million euros).

FNG moves to Brussels stock exchange

06/07/2018

Belgian fashion group FNG has collected 60 million euros by issuing new shares. The new shares will be traded on the Amsterdam Stock Exchange and - for the first time - on the Brussels Stock Exchange as well.

Athleteshop ends its run

02/07/2018

Dutch sports web shop Athleteshop has filed for bankruptcy, after an abysmal year in which strings of complaints led to all sorts of problems. Social media and review sites were flooded with customers complaining about late deliveries.

Alibaba goes Turkish with stake in Trendyol

29/06/2018

Alibaba is the new strategic partner of Trendyol, one of the best-known e-commerce companies in Turkey. With this partnership, the Chinese retailgroup strengthens its presence in Europe.