Whatās Going On Here?No matter what the pandemicās had in store, Walmartās stores have had something better: the retail chain reported better-than-expected quarterly earnings on Tuesday. What Does This Mean?The pandemicās had a massive impact on the way Walmartās customers shop: itās not just that theyāre more likely to stock up in bulk when they visit its stores, itās that theyāre now more likely to avoid them altogether in favor of the ā checks notes ā world wide web. And that showed in Walmartās update: the companyās US ecommerce sales grew by 79% in the third quarter versus a year ago. And even though sales growth in US stores that've been open for at least a year didnāt break records like they did in the first and second quarters, they still jumped by a lot more than analysts were expecting ā and without help from government stimulus checks this time around. Why Should I Care?For markets: Two can play at that game.
In September, Walmart launched Walmart+ ā a membership service that gives customers free shipping on items including produce and grocery, and an unapologetic attempt to compete with Amazon Prime. But seeing as the company didnāt say much about the scheme in its update, investors will have to wait to find out how itās been going. Meanwhile, Amazon is returning the favor: it launched prescription drug delivery service Amazon Pharmacy on Tuesday ā a long time coming, considering the ecommerce giant bought American online pharmacy PillPack back in 2018.
The bigger picture: Ho ho oh noā¦
Good earnings aside, the rest of the year isnāt without its challenges for Walmart. Fresh data out on Tuesday showed US retail sales growing by just 0.3% in October compared to the month before, and that could slow even more as coronavirus cases rise and government benefits lapse. Just in time for the all-important holiday season tooā¦ | 