October 19, 2020
According to ModernRetail, during the pandemic, Walmart has benefited from being one of the only retailers prepared to adapt. Its stores were allowed to stay open. It had a grocery pickup and delivery operation in place before the pandemic. While Amazon struggled with a huge surge in orders and being out-of-stock on many items, some customers found they could get a faster delivery time by going through Walmart. The company ...reported that its e-commerce sales during Q2 grew 97% year-over-year. Total revenue was up 5.4% to $137.7 billion. Comparable store sales were up 9.3% year-over-year. Walmart saw stronger-than-expected online sales growth during the second quarter in higher margin categories like home and apparel. As a result, the company’s overall profit margin increased by 63 basis points. After the majority of other stores reopened in the US and delivery times have started to stabilize, the question appears how well Walmart is able to retain its customers throughout the rest of the year. In March, Walmart announced it was integrating its grocery app into its main flagship mobile app to encourage more cross-shopping from its grocery pickup and delivery customers. Walmart’s answer to Amazon Prime, reportedly called Walmart+, was supposed to launch in July according to Vox. But the launch of Walmart+ has supposedly been delayed indefinitely. John Furner, president of Walmart’s US division, said that the company was still testing out more ways that the membership “could remove friction from customer’s lives.” He believed that Walmart’s broad, low cost assortment was a strong enough selling point to keep customers coming back.