Walmart’s results, due Thursday morning (Nov. 16) before the market opens, will likely offer the latest variations on several themes:
- Consumers seeking value, particularly when it comes to consumables and groceries;
- a shift to digital channels to make at least some purchases, where the online marketplace model is gaining momentum;
- and a combination of omnichannel choices that allow people to get what they need, from online search to in-store pickup, delivery and curbside pickup, how, when and where.
The second quarter (the company operates over a fiscal year) data noted that Weekly active digital users increased by more than 20% and the number of marketplace customers increased by 14%.
Additionally, e-commerce sales jumped 24% in the United States.
Digital initiatives and private label sales growth
At the end of last monthAs further evidence of digital advancement, the company has renovated 117 stores that include “enabled corners” with interactive screens that allow customers to interact with items, and where there are “digital touchpoints” that have Also been strategically placed throughout the store to provide customers with more information about products and services.
As for the sales themselves, Walmart clarified on its latest call that grocery-related private label sales were up 9% year-over-year. CEO Doug McMillon said during the conference call with analysts that consumers are more budget-conscious and also noted that “our curbside pickup business continues to grow as people look for ways to earn time and to be satisfied in store. Delivery is now growing faster than pickup in all three segments. » Curbside pickup saw double-digit growth in the most recent period, according to comments on this call.
Are consumers stressed during the holidays?
Competitor Target’s results and comments on Wednesday could provide a prologue to what we’ll hear and see when Walmart releases its report.
As PYMNTS reported, IIn comments made during the call, “there is enormous pressure on consumers’ wallets and the impact of very high food and drink inflation, compared to before the pandemic. Food and beverage prices have increased by an average of 25%,” said Chief Operating Officer John Mulligan. “And that has certainly put pressure on consumers when making choices and certainly forced them to make very difficult choices when it comes to discretionary goods.”
The company’s overall product sales declined 4.9%. And company details benefits documents note that digital composition sales fell 6%.
Same-day services grew more than 8%, led by more than 12% growth for Drive-Up, Target said.
As Brian Cornell, CEO of Target, said during the conference call: “Consumers overall are still spending, but pressures such as higher interest rates, resumption of student loan payments, increasing credit card debt and reduced savings rates have left them with less discretionary income. forcing them to make compromises in their family budget. For example, this year we saw more and more consumers delaying their spending until the last moment. Elsewhere, as Christina Hennington, chief growth officer, said, “inflation in…certain categories over the past few years, particularly in food, home essentials, and even pets companionship and babies, is significant. And it will take time to overcome this.
The headwinds are blowing – and we’ll soon see how Walmart fares.
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