Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

WALMART INC.

(WMT)
  Report
Delayed Nyse  -  04:00 2022-09-29 pm EDT
132.25 USD   -0.65%
09/28Instacart, Shipt plan new payment methods for low-income U.S. shoppers
RE
09/28Walmart Opens First of Four Planned Fulfillment Centers in Joliet, Illinois
MT
09/28Walmart Opens First of Four Next Generation Fulfillment Centers in Joliet, IL
BU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Walmart.com drew higher-income shoppers looking to buy food

08/16/2022 | 05:41pm EDT
FILE PHOTO: Illustration shows Walmart logo

NEW YORK (Reuters) - U.S. inflation at a four-decade high has hit lower-income Americans the hardest. On Tuesday, Walmart's results showed that those with bigger wallets are getting squeezed, too.

The nation's largest retailer, which caters to budget-conscious shoppers, said it saw more middle- and higher-income customers shop at Walmart during the second quarter, a shift it said was different from prior economic downturns.

"In Walmart's U.S. business, we have seen mid-to-higher income customers come to Walmart looking for value. As you would expect, food and consumables, in particular, are places where they're looking to save some money," Walmart's Chief Executive Officer Doug McMillon said on an investor call.

The Bentonville, Arkansas-based retailer said the company grew market share in the grocery segment during the second quarter ended July 31, with three-quarters of the gains coming from shoppers with annual incomes over $100,000. The company did not provide additional details on its market share gains.

Most of these sales came through its U.S. e-commerce business, which grew 12% during the quarter, and helped the retailer post better-than-expected sales and lift its full-year profit forecast.

In the United States, Walmart's online grocery market share, which includes pickup and delivery services, rose to 55% in the month of June from 52% in March.

By contrast, online grocery delivery platform Instacart's share dropped to 27% from 28%, Amazon's declined to 7% from 8% and Kroger's fell from 9% to 8% during the same period, data from research firm YipitData shows.

Target's online delivery service Shipt also lost market share during the period, the data showed. The attraction to Walmart during this period of economic stress is different compared to the financial recession of 2008-09 when it had a smaller e-commerce business and didn't offer many of its current services, Walmart's U.S. Chief Executive John Furner said on an investor call.

In-store pickup, delivery from stores and its Walmart InHome business - a service that provides delivery of groceries right to a shopper's refrigerator - were key in attracting the higher-income consumer, he said.

Furner also attributed some of the new customer growth to the nearly two-year old Walmart+ membership program.

Priced at $98 annually versus Amazon's $139 annual Prime subscription, Walmart+ offers incentives including unlimited free deliveries on orders over $35 and discounts at gas stations.

"Our ability to serve customers in a more flexible manner than what we could have 13, 14 years ago was pretty dramatic," Furner said. "We definitely have a number of ways that we can serve customers today that just, quite frankly, did not exist the last time we went through a downturn."

CFO Rainey said the retailer is "more relevant" to a wider group of people after it started allowing third-party sellers to offer products on Walmart.com.

This added millions of products to its website - from 10 million five years ago to more than 240 million now.

"As we add new product ...we are becoming more relevant to a wider group of people, " Rainey said.

"It's fairly meaningful growth ... And with that, we aspire to sell more general merchandise for more households including higher income (ones)"

(Editing by Deepa Babington)

By Siddharth Cavale


© Reuters 2022
All news about WALMART INC.
09/28Instacart, Shipt plan new payment methods for low-income U.S. shoppers
RE
09/28Walmart Opens First of Four Planned Fulfillment Centers in Joliet, Illinois
MT
09/28Walmart Opens First of Four Next Generation Fulfillment Centers in Joliet, IL
BU
09/28Walmart Inc. Opens First of Four Next Generation Fulfillment Centers in Joliet, IL
CI
09/28Factbox-U.S. companies brace for Hurricane Ian
RE
09/28Instacart, Shipt plan new payment methods for low-income shoppers
RE
09/28Millions urged to evacuate as Florida Gulf Coast braces for Hurricane Ian
RE
09/27Walmart launches immersive experiences
AQ
09/27Walmart to cover fertility treatments under insurance plan
AQ
09/27Walmart Names Kindbody as Provider for Associate Fertility and Family-Building Benefits..
BU
More news
Analyst Recommendations on WALMART INC.
More recommendations
Financials (USD)
Sales 2023 595 B - -
Net income 2023 14 749 M - -
Net Debt 2023 42 490 M - -
P/E ratio 2023 24,6x
Yield 2023 1,70%
Capitalization 359 B 359 B -
EV / Sales 2023 0,67x
EV / Sales 2024 0,64x
Nbr of Employees 2 300 000
Free-Float 51,6%
Chart WALMART INC.
Duration : Period :
Walmart Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends WALMART INC.
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 41
Last Close Price 132,25 $
Average target price 151,89 $
Spread / Average Target 14,8%
EPS Revisions
Managers and Directors
C. Douglas McMillon President, Chief Executive Officer & Director
Marcus Osborne Vice President
John David Rainey Chief Financial Officer & Executive Vice President
Gregory B. Penner Non-Executive Chairman
Clay Johnson Enterprise Chief Information Officer & EVP
Sector and Competitors
1st jan.Capi. (M$)
WALMART INC.-8.00%358 958
SYSCO CORPORATION-9.00%36 177
KROGER-1.28%31 982
WOOLWORTHS GROUP LIMITED-9.76%26 872
LOBLAW COMPANIES LIMITED7.36%26 562
AHOLD DELHAIZE N.V.-13.69%25 108