The retail giant saw US comparable sales rise 6% year-over-year (YoY) in its last fiscal quarter (ending May 1, 2021). This growth was partly attributed to a continued surge in ecommerce sales, which rose 37% YoY and has more than doubled over the last two years. While its US comparable and ecommerce sales rose, both experienced a slowdown from the year prior, when the metrics jumped 10% YoY and 74% YoY, respectively. But last year’s spike was fueled by the start of the pandemic—when consumers focused on buying essentials and quickly shifted online.
Walmart also gained market share in groceries despite rumors the retail giant faced serious challenges in the industry:
While Walmart benefitted from the surge in ecommerce, the potential in-store retail rebound could strengthen its position against competitors that have also taken advantage of rising ecommerce. Walmart has seen heightened competition from Amazon, Instacart, and other digital-focused firms, with each beefing up their ecommerce offerings during the pandemic and turning in impressive online sales. But as people begin to shop in stores regularly again, Walmart can try to build consumer loyalty by offering convenient grocery and general shopping options with both its existing digital experiences and its massive store network, possibly making it more appealing than ecommerce-focused firms and helping it build up its grocery and overall ecommerce market share.