Walmart’s bounce back bodes well for US retailers
The company has recovered from a lacklustre start to the year with the strongest sales gain in more than a decade fuelled by its grocery business
New York — Walmart bounced back from a lacklustre start to the year with the strongest sales gain in more than a decade fuelled by its grocery business, brightening the outlook for the overall retail sector. The stock soared in early trading. Comparable sales at US Walmart stores rose 4.5% in the three months to end-July, the company said on Thursday, more than double analysts’ estimates. Grocery sales rose the most in nine years thanks to improved fresh-food offerings, and web revenue growth accelerated from the previous period. The world’s biggest retailer also boosted its full-year forecasts for comparable sales and adjusted profit. Walmart has benefited from improved consumer sentiment and tax cuts that have put more money in Americans’ pockets this year. US retail sales rose by more than forecast in July, as shoppers snatched up apparel and school supplies. But investors remain broadly sceptical that brick-and-mortar retailers can keep pace with online rivals like Amazon.com, e...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.