Wal-Mart to integrate physical, online units in Brazil as part of revamp campaign

The Brazilian unit of WalMart Stores Inc has decided to integrate its physical retail and e-commerce activities, as well as expand its so-called online marketplace operations, the company said in a statement on Tuesday.

Together with an ongoing campaign to revamp its stores and introduce more regional and in-house brands, the new initiatives should cost about 1.5 billion reais ($464 million) over the next four years, Walmart Brasil said.

Online marketplaces are an increasingly popular ecommerce format, in which websites offer products from third-party retailers, rather than just the company hosting the site.

In November, Wal-Mart reported its 13th consecutive rise in quarterly comparable sales, driven by an increase in the number of shoppers who visited stores and purchased online.

Sales at US stores open at least a year rose 2.7 percent, in the third quarter ending October 31. Analysts had forecast a gain of 1.7 percent, according to a poll by research firm Consesus Metrix.

The retailer has recorded more than three straight years of growth, unmatched by any other retailer.

The third quarter marked Wal-Mart’s strongest US sales growth since 2009 despite sluggish demand and competition from Amazon.com Inc that has hurt brick-and-mortar rivals.

Online sales soared 50 percent during the third quarter, exceeding growth rates in the industry, but slower from the previous quarter’s 60 percent rise.