Walmart’s Same-Store Sales Growth Slows
Walmart’s U.S. same-store sales growth slowed to 2.6%, but financial institutions continue to view its e-commerce, digital advertising, and membership businesses as important supports for its business-model transformation.
What are the key facts?
- 1Walmart
- 2U.S. same-store sales growth of 2.6%
- 3Share-price volatility
- 4E-commerce and digital advertising businesses
What happened?
Walmart recently reported that its U.S. second-quarter same-store sales increased by 2.6%, below some market expectations and triggering share-price volatility. The performance was viewed as one of the lower growth rates for Walmart’s U.S. same-store sales in nearly six years. At the same time, financial institutions said Walmart’s business changes should not be assessed solely through physical retail sales data. The company continues to develop e-commerce, digital advertising, and membership services, which are becoming increasingly important to its business model. The report said Walmart’s digital businesses and membership system continue to support the platform’s efforts to expand market share, while its advertising business has become an important component beyond its retail operations.
What does this mean for cross-border sellers?
Walmart’s growth focus is expanding beyond individual product sales to an ecosystem of e-commerce, memberships, and digital advertising, making platform competition more comprehensive. Sellers that focus only on basic commissions while overlooking on-site advertising and membership reach may lose ground in the traffic competition. Highest-priority action: Break down organic traffic, advertising traffic, and conversion data for your Walmart store this week, and identify the products most worthy of additional budget.