If there were any doubts that the omnichannel consumer is here to stay, Walmart’s latest results, out this morning (Nov. 16), might dispel them.
They show a slowdown in eCommerce momentum, but healthy same-store sales, indicating a pivot toward buying in person, in-store, or picking up on the premises.
U.S. sales at stores open at least a year rose 9.2%, excluding fuel (which can be a volatile contributor to the mix). Walmart’s eCommerce sales in the U.S. grew 8% versus the year-ago quarter — or 87% on a two-year “stack,” as the retail giant reported in supplemental materials. The number of comparable transactions gained 5.7% year over year.
Grocery comparable sales were up in the high-single-digit percentages, while general merchandise gained mid-single-digit percentage points. The results reflect strong in-store traffic that rose compared to pre-pandemic levels, as comp stores were up 15.6% on a two-year stack, and comparable tickets were up 27% on a two-year stack.
Government Data, Too
Retail sales data for October released by the Census Bureau on Tuesday underscore broader momentum across the sector. Retail sales were up 1.7% last month. Excluding auto, gasoline, and building materials sales, they rose 1.6%. Walmart’s grocery traffic seems to echo the industry’s momentum. Government data show that sales at grocery stores were up about 8% in October, for example, and up 2.7% through the trailing 10 months, as measured over 2020. Nonstore retailers, a category that includes firms that sell their offerings online, saw sales rise 14.2% through the past 10 months.
No surprise here: Inventory remains in focus as supply chains continue to be snarled. Walmart has said that inventory is up 11.5%, in a bid to meet shopper demand for holidays.
The seemingly hybrid nature of Walmart’s sales gains illuminates impact of rising vaccine rates and consumers’ desire to spend at least some time in physical settings — among people and among the shelves.
But for the winter and beyond, eCommerce momentum could pick up again for Walmart and other retailers. In terms of long-term trends, a PYMNTS study found that 31% of consumers have bought retail items online channels, while 17% had bought groceries that way — indicating room for growth in the latter category.
And more immediately, PYMNTS research shows that 87% of holiday shoppers plan to shop online this year, up from 77% last year. As many as 48% say they will begin their holiday shopping before Thanksgiving. Another 25% plan to begin on Black Friday, the traditional start to the holiday shopping season.
Read also: 87% of Consumers Will Shop Online For Holiday Gifts, Half Will Start Before Thanksgiving