Walmart's U.S. Store Sales Jumped 20% in Past Month
April 03 2020 - 3:33PM
Dow Jones News
By Sarah Nassauer
Walmart Inc. sales rose rapidly in stores and online in recent
weeks as shoppers, worried about the spread of coronavirus, rushed
to stockpile water, face masks and canned goods before shifting
their focus to necessities for a prolonged stretch at home.
Walmart sales from its over 4,700 U.S. stores increased nearly
20% over the past four weeks compared with the same period last
year, according to documents viewed by The Wall Street Journal.
Sales on Walmart.com rose over 30% over the past eight weeks.
Downloads of Walmart's online grocery mobile app skyrocketed.
U.S. retailers that have remained open because they sell
products such as food and household goods have seen sales of
certain products rise rapidly as nervous shoppers stock up on paper
goods, food and other items. Walmart is the biggest, with $341
billion in U.S. sales.
The rush has challenged retail supply chains and online
logistics and, in some cases, has pressured profits as sales of
higher-margin products fall.
Target Corp. said last month comparable sales, those from stores
and digital channels operating for at least 12 months, were up more
than 20% thus far in March compared with the same period last year.
But the sales surge came from food and household goods, while
higher margin apparel sales fell, leading Target to withdraw its
financial guidance for the quarter and full year.
Panic buying appeared to be slowing over the past week. Overall
consumer goods sales rose 21.5% for the week ended March 28
compared with the same week in 2019, according to Nielsen . That is
elevated, but down from a 67.9% sales spike for the week ended
March 21.
The Walmart documents show how the country's largest retailer
has experienced a rapid shift in shopping behavior as the novel
coronavirus spread through the country. They also suggest how
Walmart aims to capitalize on those changes in the coming weeks and
beyond.
A spokesman for Walmart had no comment.
As the coronavirus first emerged in the U.S., customers started
"proactive health-minded buying," such as hand sanitizers, said the
document. Then shoppers started to prioritize products essential to
virus containment, like face masks, before moving on to "pantry
preparation." During this period more shoppers flocked to stores
and spent more per trip, particularly on shelf-stable and frozen
food as well as snacks, and a broader assortment of health and
safety products.
Then shoppers prepared for life mostly at home, starting what
Walmart dubbed "quarantine living preparation." In this period more
shoppers favor online shopping and face rising out-of-stock
products, and the supply chain strains, said the document. Shoppers
stock up on more food and household and personal care items. In the
past four weeks, rice, water and flour have been in high
demand.
The next phase, what Walmart called "restricted living," means
shoppers are preparing to home-school and work from home. Customers
will severely restrict store visits and favor online fulfillment,
said the document. This phase is favoring sales of iPads, routers,
board games, home exercise equipment and home cooking supplies such
as small appliances.
Walmart predicts that shopping will be different when we are
"living a new normal" after the pandemic. "People return to daily
routines having adopted more convenient shopping habits. They come
together to celebrate moments with family and friends," the
document said. This period could favor sale of products that
promote healthy living, back-to-school and work needs and group
gatherings, Walmart predicts.
A Walmart survey from March, cited in the document, asked people
how long they planned to continue their "cautionary behavior
changes." Nearly 70% of respondents said "as long as it takes."
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
April 03, 2020 15:18 ET (19:18 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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