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Industry insiders have pointed to Walmart China’s strong fourth-quarter growth as a sign of a steady recovery for the fast-moving consumer goods and retail sectors this year. According to recent financial results released by the global retailer on Feb 21, Walmart achieved strong revenue growth globally in the fourth quarter, with strength in both stores and e-commerce. The total revenue for the quarter was $164.0 billion, up 7.3 percent year-on-year.
Walmart China’s net sales growth of 13.5 percent and comparable sales growth of 13.3 percent were major contributors to the company’s impressive Q4 performance. Continued strong sales growth in Sam’s Club, e-commerce, and improved hypermarket performance were cited as the driving forces behind the Chinese market’s performance.
E-commerce net sales, which contributed 48 percent of Walmart’s net sales in China, increased 70 percent year-on-year. Walmart International’s net sales increased 2.1 percent to $27.6 billion, with the Chinese market being a significant factor in this growth.
“We’re excited about our momentum,” said Doug McMillon, President and CEO of Walmart Inc. “The team delivered a strong quarter to finish the year, and as our results in the last two quarters show, they acted quickly and aggressively to address the inventory and cost challenges we faced last year. We are well-positioned to start this fiscal year.”
Walmart’s market share in China has risen from 5.2 percent to 5.5 percent compared to a year earlier, mostly driven by Sam’s Club’s steady growth. Walmart hypermarket also improved its financial performance, according to Kantar Worldpanel China.
Overall, the sales growth of Walmart China in the fourth quarter has stood out from the sector, as revenues of China’s fast-moving consumer products have declined. Thanks to the stimulus policies to increase consumption from local governments, out-of-home consumption and brick-and-mortar traffic gradually rebounded at the beginning of this year, said Kantar.
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