Whatâs Going On Here?No matter what the pandemicâs had in store, Walmartâs stores have had something better: the retail chain reported better-than-expected quarterly earnings on Tuesday. What Does This Mean?The pandemicâs had a massive impact on the way Walmartâs customers shop: itâs not just that theyâre more likely to stock up in bulk when they visit its stores, itâs that theyâre now more likely to avoid them altogether in favor of the â checks notes â world wide web. And that showed in Walmartâs update: the companyâs US ecommerce sales grew by 79% in the third quarter versus a year ago. And even though sales growth in US stores that've been open for at least a year didnât break records like they did in the first and second quarters, they still jumped by a lot more than analysts were expecting â and without help from government stimulus checks this time around. Why Should I Care?For markets: Two can play at that game.
In September, Walmart launched Walmart+ â a membership service that gives customers free shipping on items including produce and grocery, and an unapologetic attempt to compete with Amazon Prime. But seeing as the company didnât say much about the scheme in its update, investors will have to wait to find out how itâs been going. Meanwhile, Amazon is returning the favor: it launched prescription drug delivery service Amazon Pharmacy on Tuesday â a long time coming, considering the ecommerce giant bought American online pharmacy PillPack back in 2018.
The bigger picture: Ho ho oh noâŠ
Good earnings aside, the rest of the year isnât without its challenges for Walmart. Fresh data out on Tuesday showed US retail sales growing by just 0.3% in October compared to the month before, and that could slow even more as coronavirus cases rise and government benefits lapse. Just in time for the all-important holiday season too⊠| 