Walmart draws more shoppers to brick-and-mortar stores

In the second quarter, Walmart posted better results than expected in the United States. The retailer adjusted its revenue forecast for the full year upwards, despite a slowdown in online growth. 

Consumption vouchers

Walmart’s comparable sales in the United States increased by 5.2 % in the three months up to 31 July. Analysts had only expected growth of about 3.7 %, Reuters reports. Shoppers bought more clothing, travel essentials and back-to-school products. Various government measures, including consumption vouchers that were distributed during the pandemic, also boosted in-store sales.

The company, which reported online sales growth of up to 97 % last year as people eagerly used its fast delivery services at the pandemic’s peak, said US e-commerce sales rose 6 % in the second quarter. That is a slowdown compared to the first quarter, when online sales rose 37 %. Nevertheless, Walmart is on track to achieve global e-commerce sales of 75 billion dollars (nearly 64 billion euros) by the end of the year.

Divestments

Abroad, results painted a different picture: the retailer’s international operations shrank by 15 % to 23 billion dollars (just shy of 20 billion euros) due to divestments. The total group sales were 2.4 % higher than a year ago and reached 141 billion dollars (120 billion euros). The company’s operating profit rose by more than a fifth to 7.4 billion dollars (6.3 billion euros).

For the full financial year, Walmart now expects comparable growth in the US of 5 to 6 %, instead of the low single-digit growth it had previously anticipated. The only prerequisite is that the US economy continues to perform strongly.