US retail giant Walmart bets its online sales will expand
By Matthew Boyle - Oct 18th 2018, 10:42
Walmart expects some of its fastest sales growth this decade as it draws in more digital customers in its turf war against Amazon.com.
Same-store sales in the US excluding fuel would grow 2.5% to 3% in the next financial year, the company said ahead of its shareholder meeting. That follows expected growth of about 3% this year, which would be the fastest pace since 2008, according to Bloomberg data.
E-commerce sales will expand about 35%, boosted by more online-grocery pickup locations and new products.
The share price rose as much as 1.1% to $94.89 as of 9.35am in New York. Shares are down 5% in 2018.
Walmart’s web business has been a bright spot for the retailer as services such as online grocery and acquisitions of upscale brands have brought in new customers, who spend nearly twice as much as those who shop only at its stores.
Walmart should benefit from the bankruptcy of Sears heading into the crucial holiday season, even as concerns linger over the effect of Chinese tariffs and wage pressure from rivals Amazon and Target.
Investors thus far have been willing to accept losses from the online business as the necessary cost of keeping pace with Amazon, which has made inroads in categories such as apparel.
Amazon is now trying to boost its fresh food business and grab market share from the nation’s two biggest grocers, Walmart and Kroger.
Walmart has responded by lowering prices and introducing grocery service through its Jet.com subsidiary in urban markets such as New York City.
Walmart said its $16bn acquisition of Indian e-commerce leader Flipkart would lower earnings in 2018 and 2019. Excluding Flipkart, 2019’s earnings would see a low- to mid-single digit increase, the company said, after the 5% boost it already forecast for this year.
"While the top line outlook for 2019 looks healthy and was generally in line with expectations, the margin view for next year did come in softer than expected," Chuck Grom, an analyst at Gordon Haskett Research Advisors, said.Business Live
Truworths profit at nine-year low as profit plunges over 70%
16/08/2019 - 11:52
Shares in Truworths slumped to a nine-year low on Friday morning after the fashion retailer reported a 74% slide in profits amid difficult trading environments in SA and the UK.
UnionPay cards - the largest card scheme in the world - now accepted at all Pick n Pay stores across SA
16/08/2019 - 11:11
UnionPay International (UPI) has announced significant progress in the South African retail payments market through their co-operation with Pick n Pay and Absa Bank. Through a tripartite co-operation agreement, Pick n Pay, a major food, clothing, and general merchandise retailer, is now enabled to accept UnionPay cards at all of its till points across its approximately 1,800 stores countrywide.
With banana leaf lamps, H&M backs firms promising social change
15/08/2019 - 10:31
With lampshades made by Indian women and trays from East Africa, H&M said that it had become the latest retail giant to back businesses with a mission to do good, as pressure mounts to end throwaway consumerism.
Kit Kat goes solar at Benoni Cash & Carry site
15/08/2019 - 09:11
In a bid to reduce its carbon footprint, mitigate load shedding and become less reliant on the national grid, the Kit Kat group has completed a solar power installation at its Benoni Cash & Carry store.
Choppies to exit SA market, chair to step down
15/08/2019 - 09:03
Botswana-based grocery retailer, Choppies, has announced that it will be exiting the South African market, four years after expanding into the country.