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.
