Walmart's Sales Gains Slow as Pandemic Drags On
November 17 2020 - 8:13AM
Dow Jones News
By Sarah Nassauer
Walmart Inc.'s quarterly sales rose at a slower pace than
earlier in the coronavirus pandemic even as shoppers continued to
buy up food and cleaning supplies and the retailer pushed early
holiday deals.
Comparable U.S. sales, those at stores or digital channels
operating for at least 12 months, rose 6.4% in the quarter ended in
late October. It was a third consecutive quarter of strong growth,
though below the prior two quarters. E-commerce sales in the U.S.
jumped 79% and accounted for much of the latest quarter's
gains.
In the U.S., shopper traffic decreased 14.2%, while the value of
the average shopping trip increased 24%. People are making fewer
trips to Walmart stores, shifting more spending online and stocking
up when they do go to stores, the company said. Sales of groceries,
paper goods and household cleaning supplies helped boost sales.
Demand for parking lot pickup services or home delivery
increased.
"We think these new customer behaviors will largely persist and
we're well positioned to serve customers with the value and
experience they're looking for," Walmart CEO Doug McMillon
said.
Coronavirus has upended the retail landscape, allowing some
retailers to thrive as more spending shifts to household basics and
home improvements. Others such as department stores and apparel
retailers have been hurt by temporary closures early in the
pandemic and people buying less clothes for work or going out.
On Tuesday, Home Depot Inc. said its comparable sales jumped
24.1% in the third quarter, after reporting sales up 23.4% in the
second quarter. Shoppers stuck at home are using money typically
spent on restaurants or travel to spruce up their surroundings.
Competitor Lowe's Cos. reports earnings Wednesday.
Shares of Walmart rose 2% in premarket trading while Home Depot
fell nearly 2%. Both shares have climbed more than 25% so far this
year.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
November 17, 2020 07:58 ET (12:58 GMT)
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