Driving eCommerce Sales on Walmart’s Online Properties

With nearly 12,000 stores, Walmart is the world’s largest brick-and-mortar retailer and controls one of the biggest distribution networks around the world. Today, however, Walmart is cutting back its investments in traditional retail while shifting its focus to digital technology and online sales channels.

Walmart’s transformation from a big-box-focused retail giant to an eCommerce-focused technology platform (which happens to operate brick-and-mortar outlets) is well under way. In Q1 of 2018, Walmart’s U.S. online sales grew by 33%, driven by fresh investments in online grocery and website design.

Despite this rapid growth in the eCommerce sector, Walmart’s net income actually fell by 30%, indicating that the company is absorbing unsustainably heavy losses in traditional retail. Clearly, Walmart’s shift to emphasize eCommerce is the right strategy for the company’s long-term growth.