Walmart reaffirmed its first quarter sales growth outlook; said its e-commerce business is on track to be profitable and highlighted technology initiatives that have made the company more resilient in a volatile economy.
At Walmart's investor meeting, Walmart CEO Doug McMillon said the company's investments in customer experience, technologies and a business model that has added higher margins have enabled the company to push its advantages. "While in the short term we are not immune to some of the effects businesses face in today’s operating environment, we are uniquely positioned to play offense," said McMillon.
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Walmart said it expects its first quarter sales to be in line with its 3% to 4% outlook. In a presentation to analysts, Walmart executives noted that Walmart is technology powered and is leveraging AI on multiple fronts to be more efficient.
Some examples of how technology investments have paid off include:
- Walmart has integrated physical and digital experiences to gain share and reach consumers via multiple channels.
- Digital businesses such as Walmart's advertising and data units have improved margins.
- CFO John David Rainey said the company has leveraged data and automation in its supply chain to manage inventory better and cut costs. In the US, half of e-commerce fulfillment center volume flows through next-gen fulfillment centers and more than half of stores receive freight from automation.
- Digital commerce best practices from the US are being deployed internationally and vice versa.
- Sam’s Club U.S. President and CEO Chris Nicholas said 40% of total transactions are digital including scan & go and online sales.
