Walmart’s latest earnings showed inflation is still making an impact but not as big as analysts expected.
$152.9 billion: Walmart, Inc.’s total revenues in Q2 2022, the company said Tuesday, up 8.4% over the previous quarter and outpacing analyst expectations. Ecommerce sales increased 12% year over year (YoY).
75%: Walmart’s food market share gains from customers earning over $100,000, according to CNBC. Inflation has impacted consumer behavior not only in grocery, which saw double-digit comparable sales growth, but also in general merchandise, which saw sales drop in apparel, electronics, and home products.
8.9%: Increase in Sam’s Club membership in Q2, reaching an all-time high. The warehouse club saw a 9.5% increase in same-store sales.
$2.53 billion: Our forecast for Walmart’s ad revenues in 2022, a 58.0% growth YoY. Global ad business grew 30% in Q2. The retailer recently added four API partners in its Walmart Connect retail media network: Quartile (ecommerce cross-channel ad platform), Sellozo (ad optimization platform), and ecommerce ad platforms Perpetua and Intentwise.
30%: The increase in Colgate-Palmolive’s new customers for its line of dorm necessities after it used Walmart’s retail media network. The campaign resulted in an 8% increase in sales and an $11.16 return on ad spend.
11%: The number of US consumers who subscribe to Walmart+, lagging behind Amazon Prime (62%), Costco Wholesale (28%), and Sam’s Club (26%). Walmart said Monday subscribers would receive Paramount+ for free, as it hopes to encourage user adoption.
44%: The percentage of US shoppers who said retailers don’t have the technological infrastructure to deal with increased or fast-changing customer demand, per Retail Insights. In order to get more insight into merchandising data, Walmart is acquiring Volt Systems. The retailer said the platform will help it forecast and optimize product assortment.
Why we care: After a rocky start, Walmart is outpacing expectations. The retailer’s reputation as a low-cost provider is bringing in new customers—and sales—during this inflationary period. Its retail media network is another bright spot: We forecast US digital retail media ad spending will reach $40.81 billion this year, more than triple its pre-pandemic total.
This was originally featured in in the Retail By the Numbers newsletter. For more retail insights, statistics, and trends, subscribe here.
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