Walmart records grocery gains, improved e-commerce profitability in Q4

Dive Brief:

  • Walmart’s U.S. comparable-store sales excluding fuel rose 4% during its fourth quarter of fiscal year 2024 as the retailer saw a softening in general merchandise sales that partially offset strength in grocery and health and wellness. 
  • Walmart’s U.S. business saw mid-single-digit growth in grocery — a category that saw strong unit growth in fresh food. 
  • Walmart CFO John David Rainey told investors on a Tuesday earnings call that the retailer has improved e-commerce profitability stateside by lowering fulfillment costs and densifying its last mile operations.

Dive Insight:

Rainey said that Walmart lowered e-commerce losses by more than 40% compared to last year’s level. 

“Our store proximity to customers is an advantage as we increasingly use stores to fulfill e-commerce orders,” Rainey said. “We’ve lowered last-mile store to home delivery costs by about 40% in the last year even as we’ve shortened [same-day] delivery times from around 90% of stores.” 

Walmart U.S.’s e-commerce growth of 17% in Q4 reflects a double-digit increase in store-fulfilled pickup and delivery. Delivery, in particular, has been a bright spot. During Q4, the retailer’s store-fulfilled delivery sales were up nearly 50%, Rainey said.

“Delivery has been a key source of share gains among upper-income households and is also the most productive channel for acquiring Walmart+ members,” Rainey told investors.

Walmart’s Q4 marked the fourth consecutive quarter of slowing comp sales growth

Year-over-year change in the retailer’s U.S. same-store sales

Walmart said that its U.S. business recorded strong share gains in grocery and general merchandise in Q4, especially among higher income households. On the food front, Walmart made “strong” headway in both units and dollars for its grocery category, Rainey said. 

Walmart’s overall food and consumables pricing in Q4 was slightly higher than the same period a year ago, Walmart President and CEO Doug McMillon said. Food prices were lower than a year ago for some items like eggs, apples and deli snacks but higher for other products like asparagus and blackberries, McMillon said.

spot_img

More from this stream

Recomended

Neobank Mercury launches personal banking services tailored for startups and entrepreneurs.

Attention, founders: Mercury wants to move into your personal orbit. The neobank designed for startups announced on Wednesday that it will open up its services for personal banking use for the first...

‘OTTera Forms Strategic Partnership with Personalization Tech Company Spideo’

OTTera, a Los Angeles-based company that provides tools for companies to...

“Texas Corporation Acquires Engineering Firm in Southwest Florida”

A Texas engineering and consulting services company has acquired GradyMinor, a civil engineering firm with two Southwest Florida offices and 75 employees. San Antonio-based Pape-Dawson Engineers is......

Celebrate the Earth in April with Brochu Walker

April is officially Earth Month, and what better to mark the month than with the super-chic, conscious luxury brand, Brochu Walker? Here’s the low-down on this...

CEO Discusses Q1 Results: Strong Performance with 16% Increase in Net Income

Article 0 Comments The Travelers Companies, Inc. today reported first quarter net income of $1.123 billion, up 16% compared to $975 million in the prior year quarter. Core income in the current...

Choosing the Best CFO Executive Search Firm for Your Business

If the past year has taught us anything, it’s that leadership matters. This is especially true among companies in the Digital Health, Life Sciences, FinTech, and Software & Technology sectors with the myriad challenges and opportunities presented by the pandemic. Whether you are bolstering your C-suite to support continued success and growth or seeking executives […]

The post Selecting the Right CFO Executive Search Firm for Your Company appeared first on Insights Success.