Is Walmart the new metonym for eCommerce?
The retail giant seems to be edging out its competitors as it went full tilt during the first quarter of its fiscal year and gained ground on the eCommerce platform.
Walmart’s total revenue from the previous quarter reached $117.5 billion, which is 1.4% higher than its earnings in the same period last year.
Its eCommerce business is getting stronger by the day, exhibiting a 63% increase in sales, which were driven organically despite its number of acquisitions, and a 69% increase in gross merchandise volume.
Taking advantage of the favourable conditions on bettering their customers’ shopping experience, Walmart CEO Doug McMillon said they are working hard at combining their digital and physical assets.
“We need to scale our eCommerce business further and see more additional strength in our store comps to deliver the results we know we’re capable of — so that’s what we’re focused on,” he said.
Big changes since last year
Since it revived its eCommerce platform last year, Walmart has garnered so much attention from shoppers and been perceived a threat by other marketplaces.
Earlier this year, it offered free two-day shipping for items worth at least $35, which Amazon quickly countered with a lower free shipping threshold.
Last month it came up with a Pickup Discount program for customers who would order items online and pick them up in-store.
Aside from that, the number of items that are being sold on Walmart.com have significantly shot up to 50 million from 10 million at the same time last year.
“The majority of our growth is and will be organic. The acquisitions are helping us speed some things up. So overall, we’re making progress in providing the seamless shopping experience our customers desire and we will keep moving along this journey,” McMillon explained.
After it acquired Jet.com last year, Walmart went on to expand its eCommerce space by purchasing online retailers ModCloth, Moosejaw and ShoeBuy.
It’s currently in talks to buy online men’s clothing retailer Bonobos.
Who would’ve thought that Walmart could overtake long-time eCommerce players in a span of just one year?
Let us know what you think in the comments.
As always, to your continued success,
Dave & Matt