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Friday, 20 May 2016 01:06

Walmart's Increased Quarterly Sales

The US retail firm, Walmart Stores reported on Thursday their higher-than-expected quarterly sales. The world’s largest retailer attributed the rise to the heavy investments and efforts made throughout the country by all sectors to boost salaries. The rising wages has enabled more and more people to foster their shopping experience. Financial experts cautioned that consumers need to be cautious and but acknowledged the fact that sheer investments in the e-commerce sector have yet to pay off.

Sales Soar By 0.9% on the First Quarter

Walmart reported revenue worth $115.9 billion in sales for the first quarter of its financial year in 2016. This is up by 0.9% the sales made in the last year over the same period. However, the firm reported a net income of $3.1 billion which is a 7.8% drop from last year’s income. In the afternoon stock trading, shares of Dow member Walmart surged by 9.1% to $68.89. Briggs, the chief financial officer of the giant retail store attributed the increased sales to the momentum that’s taking place in many parts of the business. These reports come on the heels of numerous disappointing sales reports from other retail stores such as Macy’s and the Target. This is owed to the fact that consumers still have uncertainties in the economy (probably due to the elections) despite the reduced unemployment rates and low fuel prices amongst other favorable economic conditions.

Sales Might Have Increased Due To Major Storewide Improvements

Earlier in October, shares of Walmart took a huge hit when the store decided to slash its profit outlook in order to venture more on investment by $1.5 billion in fiscal 2017. The rise of the sales in the first quarter may also be due to these investments. Storewide improvements that Walmart has scored high include cleaner parking lots, tightly managed inventories and better display of fresh goods. Greg Foran, the US Walmart president said that as one improves on the various aspects of shopping, the customer gets a better experience making them come back for repeat business. Greg added that there’s still a lot to improve on since Walmart still lags behind slightly when it comes to customer experience.

More Investment To Be Made On E-commerce

The giant retailer also has made significant steps towards investing more in online sales as it tries to fend off acute competition from eBay, Shopify, Amazon and other big online stores. Walmart said it projects a $1.1 billion investment to be channeled to e-commerce because that’s literally where the world of shopping is heading to. The company realized a 7% increase in global e-commerce sales, an increase Briggs commented on as not as good as expected. Walmart’s tepid performance in e-commerce was a reflection of a broader problem owing to poor SKU selection, website functionality as well as website interface.

 
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