Walmart sales increase at slower pace as pandemic subsides – fr

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Walmart sales increase at slower pace as pandemic subsides – fr


Walmart Inc. of

sales continued to increase in the spring quarter, but at a slower pace than at the start of the Covid-19 epidemic, with some consumers returning to more typical shopping habits as the pandemic subsided .

Comparable sales, at U.S. stores and digital channels that have been in operation for at least 12 months, increased 6% in the quarter ended April 30 compared to the same period last year. E-commerce sales in the United States increased 37%. It was the slowest online growth for Walmart since the coronavirus outbreak in early 2020 shook the retail landscape.

Sales of non-food items jumped more than 20% in the quarter, helped by government stimulus checks as customers struggled with hobby, home improvement and clothing items, the company said. Grocery sales fell from the same quarter last year when shoppers amassed some commodities such as food and toilet paper, but the retail giant gained grocery share from the relative. to last year, Walmart said.
“Our optimism is higher than it was at the start of the year. In the United States, customers clearly want to go out and shop, ”CEO Doug McMillon said in a statement. “The recovery in the US has had an impact, and the second half is more uncertain than a typical year. We anticipate continued pent-up demand throughout 2021. “

In the same quarter of last year, Walmart’s comparable sales in the United States rose 10% and e-commerce jumped 74% as consumers piled up.

Overall, Walmart’s global revenue rose 2.7% to $ 138.3 billion in the quarter ended in April. Net profit fell 32% to $ 2.7 billion, including losses on its sale of its UK and Japanese units and adjustments to the value of its stake in Chinese e-commerce company JD.com Inc.

Walmart shares rose 3% early in the session.

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Walmart and other retailers are facing rising product prices, labor shortages, and new consumer trends as pandemic shopping habits evolve. April retail sales in the United States were flat compared to March, when retailers took advantage after shoppers spent government stimulus checks. Restaurant sales increased in April, while sales declined in a range of retail store categories, including furniture, sporting goods, clothing and general merchandise, according to US government data.

This could leave a smaller sales pie for the retailers who sell the products.

Home Depot Inc.

said on Tuesday its comparable sales jumped 31% in the quarter ended May 2 compared to the same period last year. The company is capitalizing on an unprecedented demand for home improvement projects. Macy’s department store chain Inc.

reported a jump in quarterly sales and returned to profit compared to the period last year when several of its stores were temporarily closed. Compared to the same period in 2019, Macy’s comparable sales fell 10.5%.

Meanwhile, Walmart’s main rival, Amazon.com Inc.,

continues to grow sales and profits rapidly and to hire thousands of workers. The e-commerce giant recently reported a record quarterly profit with revenue up 44% to $ 108.5 billion. Its results are bolstered by large cloud computing and advertising companies.

Walmart is spending heavily to continue to grow online and to diversify its business to include healthcare, financial services and advertising, in hopes of emulating part of Amazon’s financial model. In February, Walmart said it was forecasting $ 14 billion in capital spending in the current fiscal year, up from around $ 10 billion last year.

On Tuesday, Walmart raised its operating profit guidance for the current fiscal year and said it expects comparable sales growth in the United States to remain around a previously reported range of a low single digit percentage.

How will the pandemic affect U.S. retailers? As states across the country struggle to get back to business, the WSJ is studying the changing retail landscape and how consumers might shop in a post-pandemic world.

Write to Sarah Nassauer at [email protected]

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