Walmart Inc. has reported impressive growth in its global ecommerce sales during the third quarter of its fiscal year 2025, ending on October 31, 2024. The retail giant saw a significant increase in online sales, which grew nearly five times faster than its consolidated revenue growth. CEO Doug McMillon attributed this growth to households earning more than $100,000, which accounted for 75% of Walmart’s gains in the quarter.
McMillon highlighted the success of Walmart’s in-store volumes, curbside pickup, and delivery sales in the U.S. He emphasized the importance of convenience for customers, stating that it has been a driving force behind the company’s growth. In Q3, Walmart’s consolidated revenue reached $169.58 billion, marking a 5.5% increase from the previous year.
During the peak of hurricane season, Walmart faced challenges as it had to close 400 stores, Sam’s Clubs, and distribution centers. However, Chief Financial Officer John David Rainey noted that the company is reaping the benefits of its investments in the omni retail business and seeing improved profitability in newer ventures.
Walmart’s success in the ecommerce sector is evident in its rankings. The company holds the No. 2 spot in the Top 1000 ranking of North America’s online retailers by web sales and is also ranked No. 9 in the Global Online Marketplaces Database based on third-party gross merchandise value (GMV).
In Q3, Walmart’s global online sales grew by 27% year over year, with a 22% growth in the U.S. Specifically. Rainey mentioned that customer transactions and units across stores and ecommerce remained strong, with store-fulfilled delivery exceeding $2.5 billion on a monthly run rate. The company has seen 12 consecutive months of deliveries above $2 billion.
Walmart has been investing in new technologies to enhance customer experience. McMillon highlighted the opening of a Sam’s Club in Texas, which features design changes to improve the sales mix of various categories. The company is also leveraging artificial intelligence and machine learning to address practical opportunities.
Efficiency in fulfillment and delivery has been a focus for Walmart, with over 30% of online orders coming from customers willing to pay a convenience fee for faster delivery. The company has made significant progress in automating its supply chain, leading to a 40% reduction in U.S. net delivery cost per order.
Walmart’s Marketplace and Fulfillment Services experienced a 42% year-over-year growth in Q3, with the number of sellers on the platform increasing double-digits. The SKU count is approaching 700 million items, and sales in various categories have shown significant growth.
Overall, Walmart’s strong performance in Q3 reflects its commitment to innovation, customer convenience, and operational efficiency. As the company continues to invest in technology and expand its ecommerce capabilities, it is poised for further growth and success in the competitive retail landscape.
