In Canada, McMillon said that the retailer enjoyed "good" results, despite the country's COVID-19 lockdown measures. GoLocal is a new service which was started in August 2021. The company touted its "strong sales" in Mexico, and WalMex's 166% spike in e-commerce sales. This is the first time two major retailers announced a joint venture and it has implications for the future. Walmart currently has a major stake in Indian digital giants Flipkart and PhonePe. On an international basis, Walmart executives said the company is showing "strength in India, Canada, and China, despite many markets being negatively affected toward the end of the quarter by a resurgence of COVID."Ĭanada, China, India, and Mexico are all international markets highlighted positively in the earnings call. "E-commerce sales increased approximately 64% and penetration grew more than 570 basis points to about 16% of sales." "The benefit of strategic portfolio realignment to focus on higher growth markets is becoming more evident in top line growth," Walmart Chief Financial Officer Brett Biggs said.
Minus the divestitures, net sales grew 5.1%. McMillon said that the net sales numbers were "good results." Overall, the divestitures saw Walmart International undergo 11% year-over-year dip in net sales for the quarter. Share Key Points Walmart is in talks with Tata Group for a potential investment of up to 25 billion in the Indian salt-to-software conglomerate’s new super app, the Mint newspaper reported.
Walmart continues to collaborate with Rakuten, and the companies still operate an online delivery service together. For example, in 2020, Walmart sold off most of its stake in Japanese grocer Seiyu to investment firm KKR and digital commerce company Rakuten. Rather than pulling out of certain international markets entirely, Walmart has also employed the strategy of relying more on partnerships with local businesses. In the United Kingdom, Walmart completed the sale of its wholly owned grocery chain Asda in February 2021. In November 2020, Walmart Argentina was acquired by Grupo de Narváez, a corporation that runs retail companies in Argentina, Ecuador, and Uruguay.
"Our international team has been busy transitioning the portfolio to higher growth markets, and it's working," Walmart CEO Doug McMillon said.įor the most part, that's meant divesting from less lucrative markets, and doubling down on more promising ventures around the world. On the retail giant's Tuesday earnings call, executives discussed the company's strategic divestments in the United Kingdom, Japan, and Argentina with investors. The increased demand for online retailers suggests that firms slow down (but not stop) brick and mortar international expansion. However, the use of technology for shopping is not a homogenous global experience. Walmart International has undergone some major continental drift in recent months. International expansion for Walmart, along with other retailers, is now being highly impacted by the growth in online shopping. Account icon An icon in the shape of a person's head and shoulders.
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