• Jennifer Marks

Walmart U.S gains on Q2 store traffic flow

Online transactions jumped 60%

Bentonville, Ark. – Walmart U.S. has something many other retailers are struggling to generate: positive store traffic.

It recently wrapped its 11th consecutive quarter of positive comp traffic and 12th consecutive quarter of positive comp sales.

“Retail is constantly evolving and it’s critical that we move even faster as the customer and competitive landscape continue to change,” company president and ceo Doug McMillon said in prepared remarks about the second quarter.

Key takeaways:

  • Online transactions grew 60%.
  • Walmart is using machine learning to assist merchants with pricing.
  • It is testing digital endless aisle shopping, robotics and image analytics to scan aisles for out-of-stocks.
  • It continues testing associate delivery of Walmart.com orders in a few stores.
  • By the end of the year, it will have approximately 100 automated pickup towers in stores across the United States
  • The Scan & Go test at Sam’s Club will expand to Walmart U.S. this year.

For the quarter, sales at Walmart U.S. stores rose 3.3% to $78.7 billion, with comp up 1.8%. Traffic was up 1.3% and average ticket up 0.5%.

Comp sales and traffic were solid across the home and hardlines categories during the quarter, the company said.

Sales at Sam’s Club increased 2.3% to $14.9 billion, with comp up 2.1%. Traffic was up 2.1%, but average ticket fell 0.9%.

Most categories in homelines and apparel turned in a strong performance, led by outdoor living, toys and kitchen.

Total company operating income declined 3.2% to $5.97 billion. Consolidated sales increased 2.1% to $123.4 billion.

Wal-Mart bumped up the low end of its guidance for the fiscal year to earnings per share of $4.30 and $4.40. It previously forecasted EPS of between $4.20 and $4.40 a share.

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See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!