Walmart's Winning Streak: Gains Market Share Amidst Rising Purchasing Power

Walmart has increased its annual sales and profit forecast, credited to higher grocery and merchandise purchases both online and in-store. The retailer sees share gains across all income cohorts, led by upper-income households, and anticipates an upward trend for fiscal 2025. E-commerce sales rose 27% in the latest quarter.

On Tuesday, Walmart raised its annual sales and profit forecast for the third time, driven by increased grocery and merchandise purchases both online and in-store, suggesting a potential gain in market share in the lead-up to the holiday season. The retailer is among the first major U.S. chains to reveal insights into consumer spending plans as inflation declines.

According to Walmart CEO Doug McMillon, U.S. in-store and pickup volumes grew, with delivery from stores witnessing the fastest growth. Despite stagnant inflation in recent months, the trend is downward, enhancing purchasing power. Share gains were noted across various income levels, mainly led by households earning over $100,000 annually.

The retail giant now forecasts fiscal 2025 consolidated net sales to rise by 4.8% to 5.1%, exceeding its previous estimate of 3.75% to 4.75%. Adjusted profit per share is also expected to be between $2.42 and $2.47, up from its prior forecast. Walmart has made strategic moves like investing in supply chain automation and reducing the Walmart Plus membership fee to further boost its market standing.

(With inputs from agencies.)