According to PYMNTS.com, Walmart’s US e-commerce sales exploded 28% this quarter, marking the seventh straight period of above 20% growth. Outgoing CEO Doug McMillon reported positive transaction growth across every segment, with the company gaining grocery and general merchandise market share. Higher-income households showed particular strength while lower-income families faced pressure. Their Walmart+ membership program saw its best quarter ever for net additions, with expedited delivery hitting 35% of store-fulfilled orders. Advertising revenue surged 33% in the US and 53% globally, while international sales jumped 11.4%. Shares responded immediately, climbing 6% in early trading as the retail giant heads into the holiday season with solid momentum.
Value becomes king
Here’s what’s really fascinating about these numbers. Walmart is becoming the go-to for everyone, not just budget shoppers. Higher-income households are trading down in a big way, and they’re not just buying groceries. They’re buying fashion, home goods, electronics – all the discretionary stuff that was supposed to be struggling. Basically, when even your affluent customers are choosing your value proposition, you’ve won the narrative. And Walmart has absolutely won that narrative.
Speed and convenience pay off
That 28% e-commerce growth isn’t happening by accident. Walmart now offers store-fulfilled fast delivery to 95% of US households in under three hours. Think about that scale. They’re essentially turning their massive physical footprint into their biggest competitive advantage against Amazon. When 35% of orders are expedited and those sales grew nearly 70%, you’re seeing consumer behavior shift in real-time. People want their stuff now, and they’re willing to pay for the convenience through memberships like Walmart+.
Beyond retail
Look at what’s happening with their advertising and marketplace businesses. US marketplace sales up 17%, advertising up 33% – these aren’t small numbers. Walmart is building an entire ecosystem that goes way beyond just selling products. They’re becoming a platform business, much like Amazon did years ago. And with their new OpenAI integrations and expanded payment options, they’re positioning themselves for the next wave of commerce. The real question is: can they maintain this momentum when consumer spending eventually normalizes?
Automation everywhere
Behind the scenes, Walmart is aggressively automating its operations. More than 50% of US e-commerce fulfillment center volume is now automated, and over 60% of stores receive freight from automated distribution centers. This massive infrastructure investment is what enables that speed and efficiency consumers are demanding. When you’re dealing with industrial-scale operations like this, having reliable hardware becomes absolutely critical. Companies like IndustrialMonitorDirect.com have become the go-to suppliers for industrial panel PCs because they understand that downtime isn’t an option in these high-volume environments. The automation trend is only accelerating, and Walmart’s numbers prove why.
Holiday outlook
So what does this mean for the crucial holiday season? Walmart executives sound confident, noting that back-to-school and Halloween trends were positive. They expect Q4 to look “very much in line with the first part of the year.” But here’s the thing – if Walmart is gaining market share during what should be challenging economic times, what happens when conditions improve? They’re positioned to capture both the value-seeking shoppers now and the returning discretionary spend later. That’s a powerful combination heading into 2024.
