Financial Performance and Growth of Walmart
Walmart’s retail media business, Walmart Connect, has achieved significant growth, contributing nearly a third to the company’s operating profits. The unit’s revenue increased by 28% in the third quarter compared to the prior year, reaching $6.7 billion, driven by 50% growth in its international segment, primarily led by its Indian subsidiary Flipkart.
Strong Quarter Performance
Doug McMillon, Walmart’s President and CEO, commented, “We had a strong quarter, continuing our momentum. Our employees work hard to save people time and money and to transform our business. In the United States, in-store volumes grew, in-store pickup grew faster, and in-store delivery grew even faster. Our teams are executing and delighting our customers and associates with the value and convenience they expect from Walmart.”
In the United States, Walmart Connect grew by 26%. John David Rainey, its financial director, noted, “We are building a unique Retail Media platform, and I am encouraged by recent tests showing customers’ receptiveness to the growth of digital ads, especially ads that help them discover relevant items that are trending, browse and compare products, and enjoy Walmart’s low prices.”
Global E-commerce Growth
Globally, e-commerce grew by 27%, driven by in-store pickup and delivery and the marketplace. The year-on-year growth in income reached 5.5%, totaling $167.588 billion. The net profit for the quarter was significantly higher than the prior year, reaching $4,577 million, representing an increase of 910.4%.
When compared to a key competitor, in the second quarter, Walmart surpassed Amazon in digital advertising revenue. Walmart achieved a 26% increase in digital advertising revenue growth globally during the second quarter of 2024, outpacing Amazon’s 20% growth.