Walmart’s global advertising business grew 27% in Q1, including 26% for Walmart Connect in the U.S.
The retail giant’s international advertising business was led by Flipkart and Walmex. U.S. ad sales reflected 50% growth in marketplace sellers. Overall advertiser counts were up 19% in the U.S.
The retailer saw strength in food and consumables, as well as improved growth in general merchandise. Its international net sales, which includes the Canadian market, were up nearly 11%. Global strength was broad-based, as it focused on supporting Walmart Canada’s 30th anniversary.
The company is reporting eCommerce is up 21% globally, led by store-fulfilled pickup and delivery and marketplace, with the company speeding up delivery times.
Walmart says it is seeing higher engagement across income cohorts, with share gains in upper-income households.
In Thursday morning’s (May 16) earnings call, Walmart president and CEO Doug McMillon cited low prices and a large number of rollbacks as factors that are supporting volume growth, and which suppliers are largely on board with.
Walmart says it is also reinforcing its value proposition around Chinese New Year, Easter and Valentine’s Day, which has proven successful, particularly lower Easter prices in Canada.
McMillon says the retailer is also improving its shopping experience with store remodels, and that it is completing 900 remodels this year.
The company says it is expanding its reporting data analytics products suite, Walmart Luminate, to both Canada and Mexico. Mirroring the strategy used stateside, the platform will have a phased launch, starting with shopper behavior followed by channel performance and customer perception.
Bettergoods, Walmart’s new private label offering launched in April, is the the largest food release in 20 years, with its products inspired by food trends and quality, and 70% of SKUs priced under USD $5, the company notes. The company also noted that private label grocery penetration is up.
Looking ahead, the company issued guidance for Q2 and expects net sales to increase 3.5% to 4.5%.
Finally, the company announced restructuring, including the closure of a Toronto office and other U.S. hubs.
