USA TODAY International Edition
Walmart’s online sales jump amid virus
Grocery, delivery help retailer to 74% growth
Increased demand and stimulus spending
During an earnings call Tuesday, McMillon said the company experienced unprecedented demand in categories such as paper goods, surface cleaners and grocery staples. He said other in- demand items have included office chairs, laptops, adult bikes, puzzles and exercise equipment.
Walmart discontinuing Jet. com
Walmart officials said because of the “continued strength of the Walmart. com brand,” the company will discontinue Jet. com. Walmart acquired the site about four years ago for $ 3.3 billion. While the coronavirus pandemic has accelerated bankruptcies for department stores including J. C. Penney, Walmart saw its revenue grow by $ 10.7 billion. The retailer reported its first quarter earnings Tuesday, which show revenue growth of nearly 9% and comparable sales up 10%. With increased demand for grocery pickup and delivery services, online sales grew 74%, the company said. “Our omnichannel strategy, enabling customers to shop in seamless, flexible ways, is built for serving the needs of customers during this crisis and in the future,” Doug McMillon, Walmart CEO and president, said. The company says it has spent nearly $ 900 million on expenses related to COVID- 19, which include bonuses to all hourly associates in the U. S. totaling approximately $ 755 million. Last week, Walmart and Sam’s Club announced they were giving hourly workers a second round of cash bonuses worth $ 390 million. Target said Monday that it was extending the $ 2 an hour temporary wage increase for employees through July 4, two months longer than first announced. Walmart, which has about 4,700 stores in the U. S., previously announced it was hiring 200,000 additional employees to keep up with high consumer demand during the coronavirus pandemic. Store hours were cut twice in April and most locations are open from 7 a. m. to 8: 30 p. m. The retailer also announced Tuesday that Sam’s Club comp sales increased 12%, which the company said was led by in- club transactions, while online sales grew 40%. Officials said they were withdrawing fiscal guidance for the year because of the “unprecedented variability” caused by the virus. Shares of Walmart stock were up 2.5% in early trading Tuesday. “Today’s results confirm the view that Walmart was one of the big winners from the coronavirus pandemic,” said Jesse Cohen, senior analyst at Investing. com. “They’ve made a lot of investments in grocery and they did it at the right time. If COVID- 19 would have happened two to three years ago, they wouldn’t have been as prepared.”