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Walmart leverages online grocery for ecommerce growth

walmart grocery pickup
Walmart is using pop culture “cars” to promote its grocery pickup, a move many retail observers say will help drive home big gains in e-commerce this quarter.

Bentonville, AR-based Walmart Inc. BB #:143789 continues to grow its ecommerce division, with a particular focus on grocery pickup and delivery.

The company reported some of the best earnings numbers it has had in years Aug. 15, total revenue at $130.4 billion, up 1.8% over last year.

Same-store sales were up 7.3% on a two-year stacked basis, some of the best results the company has seen in the past 10 years.

“We’re gaining market share in key categories, including food, consumables, health & wellness and toys,” said Doug McMillion, president and CEO, during the earnings call.

E-commerce, and online grocery, continue to perform well for the company.

“We saw strong sales growth at 37% for the quarter and continue to improve the customer value proposition,” said Marc Lore president and CEO, Walmart eCommerce U.S., during the call. “We’ve already rolled out our next-day delivery to 75% of the U.S., which we originally said would happen by the end of the year, and we’ll continue to roll it out selectively in other markets and also expand the number of items offered.”

Grocery pickup is now offered in 2,700 stores nationwide, and same-day delivery is available in 1,100 stores. The company plans to offer pickup from 3,100 stores by the end of the year, and same-day delivery at 1,600 stores by the end of the year.

“Grocery is truly a unique strength,” Lore said. “And, as it rolls out, we have the opportunity to offer more GM from the supercenter as well.”

View the full earnings report here.


Pamela Riemenschneider is the Retail Editor for Blue Book Services.