Walmart had a strong holiday season
Discount giant Walmart (WMT) reported its fiscal 2019 fourth-quarter (ended in January) results yesterday. The company’s revenue grew 1.86% YoY (year-over-year) to $138.8 billion, slightly above analysts’ estimate of $138.76 billion.
While the company does not disclose its exact e-commerce sales metrics, it stated that its e-commerce sales grew 43% YoY in the quarter. It attributed its strong e-commerce growth to the expansion of its pick-up and delivery business and other e-commerce services. Grocery pick-up and delivery are also easier on Walmart’s pockets.
Walmart is now the third-largest online retailer in the United States
Walmart has partnered with delivery companies such as Skipcart and Point PickUp to deliver groceries to consumers’ homes. However, it has severed its partnerships with Uber and Lyft.
Walmart expects its e-commerce to grow 35% in fiscal 2020, compared with 40% in fiscal 2019. Last year, eMarketer estimated that Walmart’s e-commerce business (including Sam’s Club and Jet) made it the third-largest online retailer in the United States, surpassing Apple. However, it’s still far behind the leader, Amazon (AMZN). Last year, Walmart’s market share expanded YoY to ~4% from 3.3%, while Amazon’s expanded YoY to 48% from 43.1%.