US retailing giant Walmart reported a 40 per cent increase in its online sales in the last quarter which drove its overall revenues to $128bn for the period.
There was jump of 10 per cent in share of the company at the New York stock market.
“We’re leveraging stores and e-commerce to make shopping faster and more convenient”, said the firm’s President and chief executive Doug McMillion.
A 0.4 per cent rise in like-for-like sales was reported by Asda, Walmart’s UK subsidiary. But compared to what the subsidiary had achieved in the earlier quarter, this was a slow growth rate. The growth rate in the previous quarter was 3.4 per cent
“Our second quarter performance shows continued momentum for 2018 and this is the first quarter we have outperformed the market since 2014,: said Asda chief Roger Burnley
“We remain focused on… innovation in our own brand, lowering prices and in continuously improving our shopping experience both in store and online.”
Before the company released its second quarter results, the shares of Walmart were amongst the worst performing ones at the Dow Jones Index. So far this year, the company has noted a drop of 13 per cent in its share prices primarily because of concerns among investors that online retailers such as Amazon were taking over more and more of its customers and therefore the company would loose out more market share in the near future.
In 2016, Wal-Mart Stores spend $3bn for acquiring the online retailing company Jet.com so that is could increase its presence in the online market.
The second quarter revenue numbers announced by the company was the highest growth reported by the company in the last ten years.
A pre-tax costs of $4.8bn levied on the compoany against the sale of an 80 per cent stake in its Brazilian operations resulted in the company making an $861m loss in the second quarter despite the record braking growth in sale revenues. Walmart virtually got rid of its Brazilian business because of its strategy to focus more on its operations and business in the Asian markets.
“We’re continuing to aggressively roll out grocery pickup and delivery in the US and we recently announced expanded… initiatives in China and Mexico” McMillon said.
(Adapted from BBC.com)