Digital sales rose 37%
Walmart (WMT) had an impressive e-commerce sales growth rate. During the first quarter, Walmart’s digital sales in the United States increased 37% on YoY (year-over-year) basis. The reported growth rate showed a slight deceleration sequentially. However, the digital sales growth rate was higher than a 33% increase the previous year.
Walmart’s strong e-commerce sales benefited from the expansion of its online grocery pickup service. The service is offered in more than 2,450 stores. Walmart expanded its grocery delivery service in nearly 1,000 stores.
Also, an increase in online assortments supported the first-quarter digital sales growth rate. Walmart has added ~2,000 new brands to its website since April 2018.
Target (TGT) has also expanded its digital offerings, The company offers online pickup and delivery services. Target’s digital sales have grown due to its expanded e-commerce offerings. Amazon (AMZN) continues to expand its grocery business to match Walmart’s offerings.
Walmart’s digital sales will likely continue to grow at a brisk pace. The company plans to expand its grocery pickup and delivery services to new markets. Walmart plans to extend its online grocery pickup service to 3,100 stores by the end of this year. The grocery delivery services are expected to expand to ~1,600 stores.
The addition of new brands and value pricing will likely support Walmart’s online sales. The company’s e-commerce sales are expected to grow 35% in fiscal 2020.