Walmart’s slowing sales reflect a shift in its business structure
Walmart’s U.S. comparable-store sales rose 2.6%, while its business continues expanding toward online retail and retail media.
What are the key facts?
- 1U.S. comparable-store sales rose 2.6%
- 2Growth rate was at a six-year low
- 3Online business and retail media continue to develop
What happened?
Walmart’s latest results showed that U.S. comparable-store sales rose 2.6%, a rate that was at a six-year low. The report said that looking only at comparable-store sales in physical retail does not capture the full changes in Walmart’s business structure.
The company’s online business continues to develop, while it is also advancing related retail media operations. The report discussed the slowdown in sales growth alongside Walmart’s expansion from traditional physical retail into digital commerce, omnichannel business, and advertising services. The analysis focused on changes in Walmart’s revenue sources and operating model; it did not interpret the slower comparable-store sales growth as a halt in the company’s overall business growth.
What does this mean for cross-border sellers?
Walmart’s competitive focus is expanding beyond simply selling products to include online, omnichannel, and retail media businesses. Sellers that only place products on the shelf will become increasingly passive. This week, review product content, advertising performance, and online inventory synchronization in your Walmart store.