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Number
Walmart said its comparable-store sales in the three months ending in late January were up 4 percent from a year earlier. The number of transactions at Walmart rose 4.3 percent, while the average ticket price decreased slightly by 0.3 percent, a sign that shoppers spent slightly less during shopping trips.
In addition to its same-store sales, Walmart said its U.S. e-commerce business grew 17 percent.
John David Rennie, Walmart’s chief financial officer, said losses from the retailer’s e-commerce business are shrinking and the company is spending less on fulfillment costs and more customers are using its delivery services.
The Bigger Picture
Walmart is one of the first major retailers to report fourth-quarter earnings. Companies including Target, Macy’s and Kroger will do so in the coming weeks.
Compared to recent years, the latest holiday season was largely free of pandemic disruptions. Supply-chain disruptions had eased, customers were back in stores and inflation had subsided. According to a release from the National Retail Federation in January, holiday sales increased 3.8 percent across the industry. That was within the range the trade organization had predicted in November.
At the same time, many retailers, including Walmart, focused on value last year as the economy cooled and shoppers became more selective. Walmart’s large grocery business and emphasis on low prices helped it avoid the sales declines reported by other retailers.
the road ahead
Analysts expect retail sales to continue to soften this year after a surge in consumer spending during the early stages of the pandemic.
Some signs are already visible. U.S. retail sales fell 0.8 percent in January from a month earlier, according to data released by the Commerce Department last week. This was a bigger loss than expected. Inflation last month was also lower than expected.
Still, Walmart sees this as a time to expand. On Tuesday it said it expected both net sales and operating income to rise this year. Last month it said it planned to open 150 new locations, a big jump from past few years. It is also increasing the salaries, bonuses and benefits of store managers to retain them.
