Walmart’s sales surge to $30 bn, thanks to Flipkart

Walmart International, the segment which consists of the retail giant’s operations outside the US including retail websites, reported solid sales growth in the quarter. This was led by the inclusion of Indian ecommerce firm Flipkart as well as strong sales growth in China and Mexico.

The firm on Thursday posted net sales of $29.2 billion, an increase of 1.3 per cent. “Excluding currency, net sales were $30.2 billion”, an increase of 4.8 per cent, it said.

The company is locked in a battle with US rival Amazon for dominance in India’s online retail market through Flipkart, which it acquired last year in May. “We like the momentum we see in parts of the business. We’re excited about what’s happening at Flipkart and Phonepe,” said Doug Mcmillon, Walmart’s president and chief executive officer, during the third-quarter (Q3) financial year 2020 earnings event.

“Beyond just our current results, the Indian market represents a significant opportunity for growth, and our team of innovators brings local expertise to a market where understanding the flow of everyday life can help us provide products and services that remove friction from the lives of our customers,” he said.

Mcmillon said this year’s ‘The Big Billion Days’ — Flipkart’s flagship festive sale — was again a success. “It was great to see record sales in India during the event.”

“We’re excited about what’s happening at Flipkart and Phonepe. The Indian market represents a significant opportunity for growth”

DOUG MCMILLON

Walmart President & CEO

Brett Biggs, executive vicepresident and chief financial officer of Walmart, said because of calendar shifts, two days of the event affected Q3 net sales this year with the remaining four days to be reported in the fourth quarter. Last year, the entire sales event was reported in Q4 results.

Mcmillon said the firm continues to see ‘tremendous growth’ at Phonepe, its digital payments arm. However, Walmart International posted a 46.2 per cent decline in the operating income on a reported basis. “As expected, the inclusion of Flipkart negatively affected operating income,” said Walmart referring to the overall operating income of Walmart which declined 5.4 per cent, or 4.1 per cent in constant currency.