Walmart is reporting a strong holiday season in Canada, as it crossed USD $100 billion in ecommerce sales and saw large global ad growth.
As part of the the retail giant’s Q4 earnings announcement on Tuesday (Feb. 20), the company says its U.S. ecommerce sales grew 23%, while global ecommerce sales grew 44%, with 25% penetration, which the company said is a record high.
Its global advertising business grew approximately 33%, to $3.4 billion, including 22% growth for Walmart Connect in the U.S. The retail company also reported that Sam’s Club’s ad business has 50% more advertising than last year and its active advertiser counts are up 20%.
Walmart agreed to buy smart TV maker/advertiser Vizio Holdings to further accelerate Walmart Connect in the U.S., so it can reach and serve customers in new ways, and “connect new dots” for advertisers, president and CEO Doug McMillon said.
In Tuesday morning’s earnings call, McMillon says the combo will create new opportunities for advertisers to connect with viewers and to provide efficiencies. McMillon says integrating Walmart’s ad platform with Vizio’s operating system will prove very useful as a growth driver for Walmart Marketplace and advertising generally.
Walmart reports it is connecting with more than 100,000 income earners, with convenience resonating with customers even more than price, different from how it has operated historically.
Walmart’s Weekly active customer ecomm business is up 17%, with customers recognizing they can come for convenience, in addition to price.
McMillon said the company is excited about Net Promoter Scores (NPS) for its omnichannel business, and that private brand penetration has risen in many countries.
He added that there are big opportunities in generative AI for Walmart, and it has a clear plan for what it wants to build and leverage from others. Search has really improved through AI already, McMillon says, “and it happened pretty quickly,” especially recently with the Super Bowl and Valentine’s Day.
Walmart also completed 700 American store remodels last year, to create more space for customers. Apparel, home beauty and pets products are benefiting from the move, the company says. This year, it promises 650 store remodels out in the market.
