Online sales rose up from the 29% growth in the previous quarter. In spite of recent acquisitions of smaller internet retailers, the increase was due to Walmart.com, fueled by changes in its shipping strategy and a discount for shoppers who pick up their online orders.
The company has overhauled its online operations, as customers get used to free shipping. It has also accelerated that shift with its acquisitions.
Walmart got rid of a fee-based shipping programme in favour of free, two-day shipping for online orders of its most popular items with a minimum purchase order of USD 35.
In April 2017, Walmart also began offering discounts on online-only items when customers elect to have them shipped to a store for pickup cheaper for the company than delivering to peoples homes. Walmart plans to expand the price cuts to more than a million items by the end of June 2017.
For the Q1 2017, sales at stores open at least a year rose 1.5%. That was fueled by a customer traffic increase of 1.5%. Wal-Mart grocery business was improved with food categories delivering the strongest sales performance in more than three years. Grocery is a key category because it drives shoppers frequently to the store and they are then likely to pick up other items.
Walmart reported Q1 2017 profit of USD 3.04 billion, with revenues of USD 117.54 billion.
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