What: Walmart Inc. has achieved a significant e-commerce milestone, with sales exceeding USD 100 billion in 2023, marking a 23% increase and signalling the retailer's growing presence in the digital marketplace.

Why it is important: This achievement not only highlights Walmart's successful expansion into e-commerce but also positions the retailer as a formidable competitor to Amazon. With a strategic focus on omnichannel retailing, Walmart is enhancing its customer service through technological advancements and a comprehensive supply chain.

Walmart Inc. has reported a remarkable year in e-commerce, with digital sales surpassing the USD 100 billion mark for the first time, reflecting a 23% increase. This growth brings Walmart closer to Amazon, though Amazon still leads with USD 255.9 billion in product sales. Walmart's success in e-commerce is attributed to its scale and strategic omnichannel approach, which includes store remodels and supply chain optimisation.

The retailer's focus on execution and technological integration, such as the USD 2.3 billion acquisition of Vizio, aims to solidify its market position. Despite a 12.4% decline in net income to USD 5.5 billion, Walmart's fourth-quarter earnings exceeded expectations, with adjusted earnings at USD 1.80 per share. The company's advertising business also saw a 33% increase, contributing to its growth.

Walmart's U.S. business reported a 4% rise in comparable sales, driven by groceries and health and wellness, despite a slight decline in general merchandise due to deflation. The retailer is attracting a broader customer base, including higher-income households, and is gaining market share in various categories.

Looking ahead, Walmart projects a 3% to 4% increase in net sales for 2024, continuing its growth trajectory albeit at a moderated pace. The company's innovative efforts, such as drone delivery services, underscore its commitment to enhancing customer convenience and exploring new avenues for expansion.

Walmart hit $100 billion in E-commerce sales for 2023