Walmart BB #:143789 executives are pleased with fresh produce performance as the company beat expectations for the second quarter of fiscal 2022.
Volumes, particularly in fresh food, are strong, said John Furner, President and CEO of Walmart US during the company’s earnings call held Aug. 17.
“We are very encouraged that units are growing faster than dollar share in grocery,” Furner said. “They’re running record volumes through our supply chain network each and every week.”
The gains are both in-store and online, where Walmart has seen business double in e-commerce over the past two years.
“We’ve seen growth with our pickup business and our e-com business in food, so all across the board, we’re just excited about some of the progress and some of the product improvements that we’ve seen in categories like produce and meat.”
The company’s Produce 2.0 initiative also is paying off, said Doug McMillon, President and CEO.
“There’s a lot of tonnage going through (grocery),” McMillon said. “I’d just underline fresh.”
Produce 2.0 was launched before the pandemic to improve the presentation and capacity of fresh produce, McMillon said – just in time for the surge in grocery.
“As I go into stores, produce is standing tall and has throughout (the pandemic),” he said. “From an in-stock point of view, it’s been one of the bright spots in terms of us being able to get product and display it well.”
“It’s one thing to stay in-stock on corn flakes, it’s another to merchandise fresh and the teams have done a nice job during this period,” McMillon said.
Total revenue for the quarter was $141 billion, up 2.4 percent. Grocery same store sales were up 6 percent. Read the full earnings release here.