The news: Ecommerce was the driving force behind Walmart’s US growth in Q2.

It contributed 510 basis points to the retailer’s comparable sales expansion during the quarter, offsetting a low-single-digit decline in in-store sales, per the company’s earnings release.

Walmart blamed the disparity on challenges within its pharmacy business, which is struggling with drug price deflation in the wake of maximum fair price rules. The retailer noted that the vast majority of sales for its health and wellness business occur in store, making any disruption detrimental to traffic.

Why it matters: Walmart’s physical retail struggles look increasingly like a long-term issue, rather than a short-term blip. We expect Walmart’s US ecommerce sales to outpace retail growth into 2028, with online sales growing 5.5 times faster this year. Ecommerce has propped up Walmart’s comparable sales growth since Q4 2025, raising questions about whether the retailer is losing its ability to drive shoppers to its stores.