Walmart Inc.’s 41% e-commerce growth in the third-quarter was the best quarter of sales growth for its online channel this year, but much of the gain came from grocery, which GlobalData Retail argues shows a need to branch out into other categories.
“To change this, Walmart needs to improve its position in non-food, especially online,” wrote Neil Saunders, managing director of GlobalData Retail. “Driving a greater volume of higher-margin general merchandise via e-commerce is critical to bolstering operating numbers.”Walmart executives recognize the need, with Marc Lore, Walmart’s U.S. e-commerce chief, saying on a Thursday premarket call with the media that home and fashion are two focus areas.
Operating margin rose 21 basis points, which was a good sign to Charlie O’Shea, Moody’s vice president, in the face of what looks to be a very promotional holiday season.
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