Walmart beats estimates in battle for top retailer spot
If Walmart hopes to maintain its narrow lead over Amazon, it’ll need more quarters like the last one. In Q1, the nation’s largest retailer saw US sales jump 3.8% year-over-year (YoY), thanks to a growing share of customers making $100K+. These numbers surpassed predictions, prompting Walmart to raise its full-year forecast — and sending shares up 7% after a few flat months.
- Walmart is diversifying its revenue sources, notably with a 24% boost to its advertising business following the acquisition of Vizio — which grants access to consumer data through connected TVs.
- E-commerce sales rose 22% YoY, driven by the popularity of curbside pickup and delivery services — and interestingly, delivery orders even outpaced pickups for the first time.
Using the Amazon playbook: Walmart is intensifying efforts to fend off Amazon, which is on pace to surpass Walmart as the top retailer. Last year, Amazon achieved a 12% increase in revenue compared to Walmart’s 6%. To stay competitive, Walmart is embracing Amazon’s successful strategy of focusing on e-commerce, advertising, and memberships — including their new Walmart+ subscription program, which it hopes will be a significant driver of growth in the coming years.
