Quarterly sales growth record
Yesterday, Wal-Mart announced its financial report for the second quarter of this year, after which the company’s share price rose more than 10%. It can make investors regain their confidence, it seems that Wal-Mart’s performance is good. Let’s take a look at the specific numbers↓↓
Total revenue increased by 3.8% to $128 billion.
Net sales increased by 4.2% to $127.1 billion.
Wal-Mart’s comparable sales in the US increased by 4.5%.
E-commerce sales increased by 40%.
The increase in comparable sales has broken Wal-Mart’s quarterly growth record for more than a decade, thanks to the growth of groceries, clothing, seasonal goods and e-commerce sales.
Reuters said that the surge in sales of groceries and e-commerce indicates that Wal-Mart can compete with Amazon.
Walmart vs Amazon
We know that in the United States, Wal-Mart is the leader in the physical retail industry, and Amazon is the leader in e-commerce retail, accounting for nearly half of the market.
Although Amazon accounts for only 5% of the entire retail industry, e-commerce has become an irreversible trend, and more and more consumers are starting to consume online. According to market research firm Cowen & Co, 86% of Wal-Mart shoppers are also shopping at Amazon.
Even with thousands of physical stores backing up, Wal-Mart feels the threat of Amazon, begins to expand online, and fights against Amazon.
1, providing grocery delivery
In June of this year, Wal-Mart announced that it would provide grocery distribution in Amazon’s backyard in Seattle, and strive to cover 40% of the nation’s homes by the end of 2018.
2, the website revision
In April of this year, Wal-Mart announced a major revision of the website. The redesigned website is refreshing from appearance to function, and the addition of personalized services and new products makes the shopping experience even richer.
3, increase the clothing brand
In February, Wal-Mart confirmed that it will launch new apparel brands (including Time & Tru, Terra & Sky, Wonder Nation and George) this year to promote e-commerce business and try to attract consumers with exclusive products.
Wal-Mart e-commerce fashion director Denise Incandela said that he wants to make the Wal-Mart website a fashion destination. It’s very clever, Amazon also has this ambition, the two fight, I don’t know who can laugh at the end…