What: Walmart achieves its best year since 1998 with an 82% surge in share value, adding USD 340 billion to its market value while outperforming competitors through successful diversification into advertising, marketplace operations, and AI-driven innovations.

Why it is important: Walmart's success highlights the evolution of retail leadership, where dominance is achieved not just through traditional retail operations but through strategic expansion into high-margin digital businesses and technological innovation.

Walmart's remarkable performance has set it apart from retail peers, with its stock significantly outperforming competitors like Dollar Tree, Dollar General, Target, Amazon, and Costco. The company's success stems from effectively balancing its traditional discount retail strengths with expansion into higher-margin ancillary businesses. Analysts attribute this success to Walmart's ability to attract higher-income consumers while maintaining its core customer base, with households earning over USD 100,000 accounting for 75% of market share gains in the third quarter.

The company's investments in advertising, third-party marketplace operations, and fulfillment services have contributed to margin expansion, while its convenient delivery options and revamped stores have enhanced customer experience. Looking ahead to 2025, analysts anticipate continued market share gains and increased profit contributions from these diversified revenue streams.

IADS Notes: While achieving USD 100 billion in e-commerce sales and expanding its retail media business, the company has effectively attracted higher-income shoppers. This multi-faceted strategy, combining AI innovation with core retail strengths, has driven its best stock performance since 1998, outpacing competitors across the retail sector.

Walmart retail dominance with best year since 1998