[eMarketer] Walmart’s diverse portfolio allows it to maintain steady growth
Walmart Inc. reported quarterly earnings and growth above analysts’ expectations as it managed to withstand inflationary pressures and higher costs, per a company release.
Walmart gained market share in grocery, reporting 5.6% growth in comparable store sales (excluding fuel) for its fiscal Q4 2022 (ended January 31, 2022).
Traffic to the retailer’s stores and websites grew 3.1% in the quarter.
Inventory levels were up 26% globally and 28% in the US as Walmart prioritized keeping items in stock.
Same-store sales at Sam’s Club rose 10.4% year over year, while membership income grew 9.1%.
Walmart Inc. added about 20,000 new sellers to its marketplace in 2021, part of the company’s push to compete with Amazon on its own turf.
While the earnings release primarily focused on the company’s retail business, its advertising arm, Walmart Connect, grew to $2.1 billion as marketers continued to flock to retail media networks. Walmart reported that the number of active advertisers using its platform increased by 136% in 2021.
eMarketer says that with costs ballooning due to supply chain and labor issues, the retailer may not be able to keep prices down much longer.
Walmart Inc. spent $300 million more than expected on COVID-19 paid leave thanks to omicron spikes, according to The Wall Street Journal. The company now says it will no longer offer employees paid time off for coronavirus-related absences.