Retail
highlighted its persistent lag behind
Amazon, even if the numbers were
better than expected. Walmart US, the
biggest division at Wal-Mart Stores,
posted a 1.8 per cent rise in comparable
sales in the second quarter from the year
earlier, with revenues rising 2.1 per cent
to $123.4 billion (Dh453 billion). to half of all growth in US internet
commerce over the period.
But net income fell 23.2 per cent to
$2.9 billion, reflecting more aggressive
spending on e-commerce and a
willingness to compete by lower prices,
as well as costs of $788 million connected
to a debt payment. Walmart has made several acquisitions
in recent years to try to catch up,
including the purchase of Jet.com last
year for about $3 billion.
Mutual threat
Walmart holds the biggest share of the
US grocery market of any retailer, with
a network of nearly 4,700 stores that
the company says are located within 16
kilometres of about 90 per cent of the
US population.
But it has faced increasingly stiff
competition from Amazon, which is set
to ramp up to a new level with the tech
giant’s impending purchase of Whole
Foods Market.
According
to
Internet
Retailer,
citing figures from the Department
of Commerce, Amazon accounted
for 38 per cent of all online sales in
the second quarter and contributed
38
August 2017
But it remains behind Walmart when it
comes to US distribution as a whole, with
the two companies accounting for 2.8
per cent and 6.3 per cent of the market
respectively last year.
It has also started to deliver groceries in
some cities via partnerships with Uber
and Lyft.
Google is also looking to expand its
activities in online shopping, grouped
together under its Google Home brand.
Under the new partnership, shoppers
can make purchases via voice-enabled
Google Home devices, as Amazon does
with its Alexa-enabled Echo devices.