Walmart says it has gained market share in Canada

BENTONVILLE, ARK. — Walmart Stores Inc. says its Canadian stores gained market share against rivals during its fiscal second quarter.

“We further improved our price position against competitors, which contributed to market share gains in key traffic driving categories such as food and consumables,” Walmart chief financial officer Brett Biggs said in remarks prepared for analysts during a conference call to discuss its most recent results Thursday.

“Inventory was also a focus, as the team reduced overall levels, even as sales increased.”

In Canada, Walmart’s biggest competitors in the food segment are the major domestic grocery chains owned by Loblaw, Empire and Metro and the Canadian arm of Costco.

Walmart Canada’s comparablestore sales rose 2.5 per cent, trailing only the Mexican arm’s 7.2 per cent growth and ahead of the United States (1.8 per cent), United Kingdom (1.8 per cent) and China (0.6 per cent).

Overall revenue for the three months ended July 31 climbed to $123.36 billion, from $120.85 billion. Walmart’s international revenue was down 1.5 per cent at $29 billion, due to divestitures.

Wal-Mart’s online sales surged 60 per cent. The results beat the $122.71 billion that analysts surveyed by Zacks Investment Research were looking for.

There are signs that traditional retailers are gaining traction online in the face of intense competition from Amazon.com.

Walmart said Thursday that it’s delivering online grocery orders from more than 900 stores with “strong results” in the early going, as the company’s rivalry with Amazon intensifies following news of the online giant’s acquisition of Whole Foods.

Amid speculation that Amazon will use Whole Foods’ network of 468 stores to expand its grocery delivery service, Walmart said Thursday that it would expand its own service to 1,100 locations by the end of this year.

Greg Foran, Walmart U.S.’s president and CEO said that the company will “watch closely” if Amazon ramps up its online grocery business. But he says he welcomes the competition, not only from Amazon but other potential rivals.

During the company’s second quarter, strong grocery sales overall gave Walmart a lift. The retail giant said its grocery sales enjoyed their strongest quarterly growth rate in five years.

But a decline in profit interrupted a streak of momentum for the retailer, whose rising sales and customer traffic in recent quarters have encouraged investors as other retail giants continue shrinking.

As traditional retailers are struggling to compete with Amazon, and to lure shoppers away from the keyboard and through their doors, Walmart has remained resilient.

Overall, revenue in the second quarter rose 2.1 per cent to $123.4 billion.

But net income tumbled 23.2 per cent to $2.9 billion, missing projections of $3.2 billion.