Walmart Sees 21% Surge in Global E-Commerce Sales

Walmart reported a 6% year-over-year increase in first-quarter total revenue to US$161.5 billion. The company's global e-commerce sales surged by 21%, fueled by store-fulfilled pickup and delivery, as well as growth in Walmart’s marketplace.

Following a 4.6% rise in US net sales from the previous year to US$108.7 billion, with US comparable sales, excluding fuel, increasing 3.8%, Walmart raised its guidance for the second quarter and full year. The company now anticipates second-quarter net sales to increase by 3.5% to 4.5%, and for the full year, net sales are projected to be at the high end or slightly above the previous outlook of 3% to 4% growth. 

“We are one quarter into a year that still has some degree of uncertainty and we do not want to get ahead of ourselves,” said John Rainey, CFO, Walmart.

During an earnings call, Doug McMillon, CEO and President, Walmart, highlighted the expectation to maintain healthy levels of sales growth while growing profit faster than sales this year. He noted the growth in units sold, transaction counts, and market share gains, including in general merchandise.

The first-quarter earnings report comes after Walmart's recent elimination of hundreds of corporate jobs and the relocation of many remote employees to the company's Arkansas headquarters. Additionally, Walmart announced the closure of its US health centers due to unachievable profitability levels, according to Retail Dive. 

Walmart Mexico and Central America (Walmex) reported a revenue surge of 9.8%, buoyed by the appreciation of the Mexican peso, with growth observed in both regions, 11.2% in Mexico and 8.7% in Central America. Same-store sales reported a 9.4% growth in Mexico and Central America with an 8.0% increase. In Mexico, the average ticket size expanded by 4.1%, coupled with a 5.3% rise in foot traffic, while in Central America, the average ticket increased by 2.4%, with foot traffic up by 5.7%.

The omnichannel strategy grew by 25% in Mexico's e-commerce Gross Merchandise Volume (GMV) driven by a 29% surge in On-Demand sales and a 39% growth in marketplace sales. Central America witnessed an 80% surge in e-commerce sales compared to the same quarter last year.

“Our ecosystem is accelerating and continues to offer affordability, foster new businesses and deepen customer loyalty,” said Gui Loureiro, President and CEO, Walmex.