by The numbers
Walmart said its comparable store sales rose 4 percent in the three months ending in late January compared with a year earlier. The number of transactions at Walmart increased 4.3 percent, while the average ticket price decreased slightly 0.3 percent, a sign that shoppers spent slightly less during shopping trips.
In addition to its same-store sales, Walmart said its U.S. e-commerce business increased 17 percent.
John David Rainey, Walmart’s chief financial officer, said losses for the retailer’s e-commerce business were slowing and that the company was spending less on fulfillment costs and more customers were using its delivery services.
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Walmart is one of the first major retailers to report fourth-quarter earnings. Companies like Target, Macy’s and Kroger will do so in the coming weeks.
Compared to recent years, the last holiday season was largely free of the disruptions of the pandemic. Supply chain bottlenecks had eased, customers had returned to stores and inflation had slowed. Industrywide, holiday sales increased 3.8 percent, according to a National Retail Federation release in January. That was within the range the trade organization predicted in November.
At the same time, many retailers, including Walmart, focused on value last year as the economy cooled and shoppers became more selective. Walmart’s large grocery business and its emphasis on low prices helped protect it from sales declines reported by other retailers.
The road ahead
Analysts expect retail sales to continue to moderate this year after a surge in consumer spending during the early stages of the pandemic.
Some signs are already appearing. US Retail Sales fell 0.8 percent in January compared to the previous month, according to data published by the Department of Commerce last week. It was a bigger loss than expected. Inflation last month also cooled less than expected.
Still, Walmart sees this as a time to expand. On Tuesday, he said he expected both net sales and operating income to increase this year. Last month he said he planned to open 150 new locations, a big jump from recent years. He has also increased salaries, bonuses and benefits for store managers in an attempt to retain them.
