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How Walmart’s International Sales Returned to Growth

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Growth across markets

Walmart’s (WMT) International segment returned to growth due to improvement in comps (comparables) in ten of the 11 markets. Favorable currency rates further supported its top-line growth. Management noted that favorable currency rates benefited the segment’s sales by $450 million. Investment in price, strength across private brands, online grocery service, and expanded offerings drove the segment’s sales in fiscal 3Q18.

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Sales by region

The company’s Walmex region (Mexico and Central America) continued to report higher sales. The region’s sales rose 6.6% during the quarter, reflecting 7% growth in comps. In Mexico, comps rose 7.2%, reflecting strength across all merchandise categories. Sam’s Club and supercenter format stores continued to grow at a healthy rate. The company’s net sales rose 11.2% in Central America, driven by positive comps across all countries.

Walmart’s net sales rose 1.9% in Canada, driven by a 1% increase in comps. Investments in price and the expansion of its online grocery pickup service to new locations supplemented the region’s top-line growth and resulted in market share gains.

In the United Kingdom, its top line improved 3.6%, driven by 1.1% growth in comps. Value pricing, enhanced in-store experience, growth in private brands, and online grocery service drove the region’s top-line growth.

Sales in China (FXI) rose 4%, driven by a 2.5% rise in comps. The company’s ticket size improved 3.3% in the region, driven by strength in the fresh and consumables category. The company expanded the grocery delivery service through JD Daojia to 140 stores, which supported sales growth.

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