Walmart CEO Doug McMillon has unveiled significant milestones attained through the online company’s ongoing investment in digital transformation. The retail giant reported surpassing $100 billion in global e-commerce sales for the first time, marking a watershed moment in its digital journey.
Highlighting its participation in the renowned online shopping festival, Big Billion Days, Walmart boasted exceptional performances in key markets including the United States, Mexico, Canada, and India.
Flipkart, the India business of Walmart, said its Big Billion Days attracted record 1.4 billion online customer visits at its digital platform.
Walmart also celebrated robust growth in China, coinciding with the onset of the Chinese New Year.
However, Walmart acknowledged experiencing a slight dip in customer experience scores during peak holiday hours, emphasizing the challenges of managing high-volume periods.
Despite these challenges, Walmart’s U.S. team achieved commendable results, delivering three-year high customer scores in stores for both pickup and delivery services, including orders fulfilled directly from e-commerce centers. To further enhance customer experience and operational efficiency, Walmart disclosed plans to invest in store remodels and supply chain automation.
Walmart, which does not reveal its spending on digitial transformation, aims to remodel 928 stores and clubs globally, with a significant focus on enhancing 650 stores across the United States. Additionally, the company aims to construct 30 new Sam’s Clubs in the U.S. and expand its presence with over 150 supercenters in American neighborhoods over the next five years.
Internationally, Walmart plans to open approximately 230 stores and clubs, primarily in Mexico, Central America, and China, with a particular emphasis on Sam’s Club expansion. The company highlighted its strong performance in China, where it ended the year with 47 Sam’s Clubs, demonstrating resilience in both revenue and profitability.
Walmart reported revenue of $648.1 billion (up 6 percent) and operating income of $6.6 billion (up 32.2 percent) in 2023.
Walmart US recently announced a significant increase in store manager wages and a redesigned bonus program to boost the performance of its employees.
Furthermore, Walmart emphasized its commitment to bolstering e-commerce capabilities globally, leveraging first- and third-party partnerships to scale its digital businesses. The company emphasized the importance of marketplace operations, fulfillment services, membership programs, advertising, and data monetization in driving bottom-line growth.
In terms of technological advancements, Walmart underscored its deployment of automated solutions to optimize supply chain operations. With ongoing efforts to retrofit regional distribution centers with automated storage and retrieval systems, Walmart aims to significantly increase efficiency and productivity across its network. The company is on track to automate a substantial portion of its fulfillment center and supercenter operations by the end of fiscal year 2026.
Moreover, Walmart highlighted the successful implementation of digital tools such as RFID, computer vision, and mobile applications to streamline operations and improve customer service. These innovations have led to notable increases in associate productivity, in-stock rates, and overall customer experience scores.
Looking ahead, Walmart anticipates reaping the financial benefits of its investments in automation, inventory efficiency, and store productivity in the coming years. The company remains committed to expanding its e-commerce assortment to maintain its competitive edge and expects to sustain its capital expenditure between 3 percent to 3.5 percent of sales in the near term.
Despite the anticipation of operating income growth trailing sales growth due to ongoing technology expenses, Walmart remains optimistic about its long-term prospects as it continues to evolve in the rapidly changing retail landscape.
Rajani Baburajan
