Walmart CEO Doug McMillon in the earnings report for 2024 said its AI technology-driven digital focus has been instrumental in driving revenue growth, efficiency, and customer satisfaction.
For the second consecutive year, Walmart has achieved more than 5 percent sales growth, with operating income increasing at an even faster pace.
Walmart’s revenue grew 5.1 percent to $681 billion in 2024. Operating income was up $2.3 billion or 8.6 percent. Walmart’s global revenue from e-commerce business surged 16 percent thanks to its digital transformation. Walmart has revealed that its growth in e-commerce sales negatively affected by timing of Flipkart’s Big Billion Days sales event (BBD) in India.
E-commerce business improved, particularly in Walmart U.S., as newer digital businesses contribute to accelerated growth and a more diversified product mix. Over the past year, advertising revenue grew 27 percent to approximately $4.4 billion.
Walmart U.S. Marketplace revenue surged by 37 percent, with nearly 45 percent of orders fulfilled through Walmart Fulfillment Services (WFS). Additionally, global membership income rose 21 percent to $3.8 billion, demonstrating the impact of digital investments on profitability.
“We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times. We’ll stay focused on growth, improving operating margins, and strengthening ROI as we invest to serve our customers and members even better,” Doug McMillon President and CEO of Walmart, said.
Walmart’s digital transformation is a key driver of its ability to generate new profit streams that enhance operating margins and fund core business investments. The company achieved a return on investment improvement of approximately 50 basis points, reaching 15.5 percent, a level last seen in 2016.
Capital expenditures of Walmart totaled $23.8 billion, with significant investments in store remodels, new construction, and supply chain automation. These initiatives improve customer experiences, broaden last-mile delivery capabilities, and enhance productivity to support Walmart’s Every Day Low Price (EDLP) commitment.
In 2025, the company expects capital expenditures to range between 3 percent and 3.5 percent of sales, with a focus on optimizing the supply chain, remodeling stores, and expanding retail locations in the U.S. and select international markets.
Technology-enabled convenience remains a priority, as demonstrated by the integration of Scan & Go and Jusco Exit towers, which differentiate Walmart in the warehouse club channel. The company’s e-commerce business continues to grow, with incremental margins reaching 11 percent — more than double the overall margin rate.
However, digital transactions come with higher SG&A costs compared to brick-and-mortar operations. As Walmart shifts further into the digital space, the retail company acknowledges the potential cost pressures but remains committed to optimizing its cost structure.
Investment in artificial intelligence and advanced technology play a critical role in Walmart’s operations, driving faster deliveries and increased automation across global supply chains. Walmart applies insights from markets like China to implement rapid delivery solutions in other regions. AI-powered tools are enhancing operational efficiency, such as a new AI agent for merchants that helps diagnose out-of-stock and overstock issues with improved accuracy and speed.
Additionally, coding assistance and completion tools for developers have streamlined deployments, reducing errors and saving approximately 4 million developer hours. By expanding these tools across North America and India, Walmart aims to further accelerate development cycles and enhance productivity.
Walmart’s commitment to leveraging innovative technology extends to its new home office buildings in Bentonville, designed to foster collaboration and innovation. By evolving its digital capabilities, Walmart is well-positioned to sustain long-term growth, improve customer experience, and maintain a competitive edge in the retail industry.
Baburajan Kizhakedath
