What:  Walmart is focusing on low prices as customers become more interesting by increasing value for money, than convenience

Why it is important:  Walmart is reporting a similar behaviour already noticed by IADS members when they are able to reopen: traffic instore is slightly lower, but average basket rises to the point of compensating the lost traffic, while e-commerce soars.

Walmart posted a total revenue of USD 128,31 billion on Q1 2021, +2,7% compared to the same period last year. In the US, digital sales increased +37%, store sales increased +5% (traffic decreased -3,2% but average basket increased +9,5%). Every segment is performing well, with the exception of international sales (-8,3%) due to divesting moves.

The company anticipates that 2021 will be less about convenience, and more about value and price. This is the reason why Walmart is planning to double down on low prices this year.

Walmart Releases Q1 FY22 Earnings

Walmart Full Report earnings