Walmart 3QFY24: Comps +4.9% Y/Y

Nov 20, 2023 | Corporate Insights, No Bull Economics

Walmart is working hard to lower grocery prices to help ease holiday consumer pressure driven by: elevated food prices that are not deflating fast enough (particularly as it relates to very high meat prices); tightening bank credit; a return to pre-covid debt levels; & the resumption of student loan repayments which affects 27MM Americans. In any case, Walmart is encouraged by traffic trends which were strong & consistent throughout 3QFY24.

Macro/Consumer

  • Elevated U.S. pricing levels in many food categories continue to pressure consumers. While pockets of disinflation are helping (with price relief in dairy, eggs, chicken, & seafood), Walmart would like to see more relief at a faster rate, especially in the dry grocery & consumables categories.  
  • Lower food prices in dry grocery & consumables would free up dollars to be spent on general merchandise.
  • Walmart is not worried about wage inflation & management is planning to further increase associate pay next year.  

Sales

  • Comp sales for Walmart U.S. increased +4.9% y/y & +3.8% y/y for Sam’s Club, with traffic growth across both in-store & digital channels.
  • Walmart U.S. e-commerce sales increased +24% y/y with +16% y/y growth in Sam’s Club’s domestic online sales. This included strength in its pickup & store fulfill delivery channels driven by a higher income demo and management noted that multi-channel shoppers are more valuable, engage more often, & spend more.
  • Walmart’s share growth in U.S. grocery is driving gains in units & dollars.
  • While general merchandise sales declined low single digits, driven by lower discretionary spending, management noted strength in categories like auto care & toy items (including the Barbie Malibu House).
  • The company’s Halloween business was softer than expected due to the weather, but cold weather categories responded right away to the start of November’s chilly weather.

Walmart 3QFY24 Financials

Marketing Consumer Research Weekly Banner

Nobull consumer research weekly

No Bull Economics

Get Corporate & Market Insights in your inbox