Corporate Profiles - 2024 - 106

COMPANY overview
Walmart
World's largest retailer wields substantial
influence in food
W
almart continues to hone its " save money,
live better " message with a business
firmly anchored in food and consumables.
Including Sam's Club, Walmart's US net sales for
its 2024 fiscal year ended Jan. 31 rose 4.6% to
$528 billion, of which $320.66 billion were grocery
sales, up 6.8% year over year. Grocery share
of Walmart's US sales grew to 61% from 59% in
fiscal 2023 and 57% in fiscal 2022.
The growth carried into fiscal 2025 as first-half
US comparable sales advanced 4.1%. A rebound
in general merchandise sales lifted Walmart in the
$2 to under $15, with the brand positioned to provide
an " elevated food experience, " the company
said.
" It's our largest food private brand release in
Chief executive officer -
Doug McMillon
second quarter after an extended stretch of adjusting
the mix of discretionary and nondiscretionary
products as consumers concentrated purchases on
essential items.
" We continue to gain market share, including
in general merchandise, and transaction counts
and unit volume are up across markets, " president
and chief executive officer Doug McMillon said of
second-quarter results. " In the US, for both Walmart
and Sam's Club, comp sales were fairly consistent
throughout the quarter. Food continues to be
strong, and it's encouraging to see improvements
in general merchandise. "
He added, " So far, we aren't experiencing a
weaker consumer overall. "
On the food side, Walmart upped the ante this
spring with Bettergoods, a US private label launch.
Pricing for the initial 300 items runs from less than
106 \ October 2024
20 years, " McMillon said of the launch. " The brand
focuses on today's trends and premium quality,
but at the same time, 70% of Bettergoods items
are priced under $5. This is the type of quality and
value that will resonate with customers across income
spectrums. "
Digital tops Walmart's priority list as the retailer
grows its omnichannel presence. That includes
efforts to sharpen online pickup and delivery operations,
optimize last- and middle-mile logistics,
automate distribution, open e-commerce fulfillment
centers, and enhance the online and in-store
customer experience via technology.
Technology investments have ranged from
drones and robotics to electric-powered fleets,
autonomous delivery vehicles and artificial intelligence.
The latter includes testing generative AI to
spotlight other relevant items for digital customers
searching the product catalog.
" We've got the best e-commerce food offer, and
new tools are helping us connect impulse items that
are general merchandise, in some cases, which helps
us improve sales and profitability, " McMillon said.
Walmart also is growing its profit stream by
developing and expanding other businesses. They
include its third-party seller online marketplace,
health care and pharmacy, advertising and retail
media, data and analytics, and ancillary business
services such as e-commerce, delivery, fulfillment
and logistics solutions.
Worldwide, Walmart posted fiscal 2024 revenue
(constant currency) of $645.15 billion, up 5.5%.
Consolidated net income rose 33% to $15.51 billion.
Global e-commerce sales averaged quarterly growth
of 22% in fiscal 2024 and 21% through the fiscal
2025 first half. In the United States, digital sales
growth of 22% in the half was aided by increased
traction for the Walmart+ paid membership program.
Walmart is still working on e-commerce profitability.
" At some point, we'll tell you that we've crossed
a threshold and that e-commerce is profitable, "
McMillon recently told analysts. CP
Walmart Inc. net income
in millions; fiscal years ended in January
2023
$15,511
2022
$11,680
2021
Source: Walmart Inc.
$13,673
Walmart Inc. net revenues
in millions; fiscal years ended in January
2024
$648,125
2023
$611,289
2021
Source: Walmart Inc.
$572,754
Walmart Inc. share price
$40
$50
$60
$70
$80
Sept. 4, 2024 = $77.00
HIGH =
Aug. 30, 2024 = $77.23
LOW =
Dec. 8, 2023 = $49.80
Sept. Nov.
2023
Jan.
2024
March M Julyay
Source: New York Stock Exchange
WALMART INC.
Sept.
Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Dairy Processing * Pet Food Processing
Corporate Profiles

Corporate Profiles - 2024

Table of Contents for the Digital Edition of Corporate Profiles - 2024