Top 3 Global Retailers to Sell Almost $1 Trillion in 2020, Walmart with 97% eCommerce Sales Growth

Though the global pandemic has wreaked havoc on retail, big industry names have reported stellar performance during the year. According to the research data analyzed and published by Comprar Acciones, Walmart, Amazon and Costco are set to be the top three retailers worldwide in 2020.

Walmart is expected to lead the pack with $527.8 billion in revenue. Amazon is projected to rake in $268.2 billion, slightly more than half of Walmart’s total. Costco, on the other hand, is estimated to make a total of $156.6 billion. Together, the three retail giants will make $952.6 billion.

It comes as no surprise that Walmart, the largest employer worldwide in the private sector, takes the top spot. For the 12-month period that ended on July 31, 2020, the titan’s revenue was $542.06 billion, an increase of 4.64% year-on-year (YoY).

Sales growth for the past several years has been relatively slow, in the low single digits according to data from Macrotrends. In fiscal 2019, it was $514.40 billion, an increase of 2.81% YoY. And in 2018, it was $500.34, a 2.98% increase YoY.

In fiscal 2021, earnings are expected to increase only 2%, but in 2022, estimates point to an 8% gain.

 

Walmart’s US eCommerce Sales Surpass $10 Billion in Q2 FY21

Though it was founded in 1969, Walmart has able to keep up with changing tides in the retail business. As a testament to this, its eCommerce sales have been on a significant uptrend. According to its earnings results for the second quarter of fiscal year 2021 (Q2 FY21), eCommerce sales surged by 97% from a year ago.

As a result of this remarkable growth, its US eCommerce sales surpassed $10 billion during the quarter. According to Geekwire, the figure accounted for 11.4% of Walmart’s overall US net sales for the first time.

In comparison, Q2 FY20 eCommerce sales in the US totaled $5.4 billion from a figure of $85.2 billion in net US sales. The segment thus accounted for 6.34% of the total. It increased to 6.85% in Q3 FY20, 8.99% in Q4 FY20 and 9.36% in Q1 FY21.

During Q2 FY21, same-store sales increased by 9.3% in spite of a 14% drop in US store traffic. This marked the second consecutive quarter of considerable growth in same-store sales as in the previous quarter.

Moreover, Walmart’s adjusted earnings per share (EPS) was $1.56, rising by 23% thanks to a revenue increase of 5.6% to $137.74 billion. It is noteworthy too that the firm spent $1.5 billion on COVID-related expenses. However, despite this, it still had an 8.5% increase in operating profits to $6.1 billion.

Notably, Amazon had its biggest online sales quarter yet during Q2 2020. Online net sales for the period totaled $45.8 billion. The previous record was made during the holiday season in Q4 2019 when it raked in $45.7 billion. Online grocery sales tripled on an annual basis during the quarter.

As a result of the impressive performance, online store sales grew by 49% YoY. Comparatively, in Q2 2019, it had only grown 16% YoY. In contrast though, physical retail sales totaled $3.8 billion, a decline of 13% from the previous year’s quarter. North American sales by increased 43.4% while worldwide revenue grew by 33.5%. Net income doubled from $2.63 billion in Q2 2019 to $5.24 billion.

 

Walmart International Sales Drop by 6.8% as Amazon’s Soars by 41%

The battle for supremacy between Walmart and Amazon rages on with the launch of Walmart+, the equivalent of Amazon Prime. Walmart+’s membership program that launched on September 15, 2020 comes with a $98 a year price tag or $12.95 monthly.

It can be used at over 4,700 stores with free delivery at in-store prices. Amazon Prime, on the other hand, comes at $119 per year or $12.99 monthly. It offers free access to Amazon Prime Video.

In an effort to snatch market share internationally, Walmart has been making moves in fast-growing economies like China and India. In China, Q1 FY21 saw an 11.7% gain in comparable-store sales and a 160% increase in eCommerce sales.

However, in Q2 FY21, international sales overall dropped by 6.8% to $27.2 billion due to changes in currency rates. With the exclusion of currency rates, net sales would have totaled $29.6 billion, a 1.6% gain.

For Amazon though, international business soared, with a growth of 41% in net sales and an operating income of $345 million. For the past several years, it has been posting losses on the international segment. In Q2 2019 for instance, it lost $601 million.

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About Nica San Juan

Nica is a BA Political Science graduate, startup founder and financial expert. She has an entrepreneurial spirit and started several startups from a young age, eventually becoming fascinated with stocks, cryptocurrencies and the blockchain economy. She specializes in financial tech and her expertise is in writing detailed tutorials and guides on how to invest in stocks and cryptocurrencies.

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