Walmart US faces USD1 billion ecommerce loss

Source: retaildive, Thursday, Jul 4, 2019

Walmart’s US ecommerce unit is reportedly projected to generate a loss of USD1 billion this year on USD22 billion in revenue, and the company is facing growing pressure from its board of directors to shed underperforming assets.

Walmart’s losses – if materializing – can be seen as moderate given the substantial investments it has made to catch up with ecommerce behemoth Amazon. However, given the strategic importance of an effective omnichannel strategy, reports suggest the retailer is now likely to cut some of its recently-acquired digitally-native fashion brands to focus its efforts on its rapidly-expanding online grocery business instead.

With Walmart prioritizing its core business, suppliers should focus on supporting Walmart.com’s efforts to scale next-day delivery through more ecommerce-optimized packaging and greater supply chain visibility. Brands should also leverage the retailer’s expanding advertising business to drive visibility, brand recognition and loyalty both online and offline.

Explore our recent Walmart Omnichannel Retailer Report to identify growth opportunities with the global retail giant.

Walmart’s US ecommerce unit is reportedly projected to generate a loss of USD1 billion this year on USD22 billion in revenue, and the company is facing growing pressure from its board of directors to shed underperforming assets.

Walmart’s losses – if materializing – can be seen as moderate given the substantial investments it has made to catch up with ecommerce behemoth Amazon. However, given the strategic importance of an effective omnichannel strategy, reports suggest the retailer is now likely to cut some of its recently-acquired digitally-native fashion brands to focus its efforts on its rapidly-expanding online grocery business instead.

With Walmart prioritizing its core business, suppliers should focus on supporting Walmart.com’s efforts to scale next-day delivery through more ecommerce-optimized packaging and greater supply chain visibility. Brands should also leverage the retailer’s expanding advertising business to drive visibility, brand recognition and loyalty both online and offline.

Explore our recent Walmart Omnichannel Retailer Report to identify growth opportunities with the global retail giant.