Walmart International, the segment which consists of the retail giant’s operations outside the US, including retail websites, reported solid sales growth in the quarter which was led by the inclusion of Flipkart as well as strength in China and Mexico. Walmart International on Thursday posted net sales of $29.2 billion, an increase of 1.3 per cent. Excluding currency, net sales were $30.2 billion, an increase of 4.8 per cent.
The Bentonville-based company (in Arkansas) is locked in a battle with US rival Amazon for dominance in India’s online retail market through Flipkart, which it acquired for $16 billion last year in May.
“We like the momentum we see in parts of the business. We’re excited about what’s happening at Flipkart and PhonePe,” said Doug McMillon, President and CEO, Walmart during the third quarter fiscal year 2020 earnings event. “Beyond just our current results, the Indian market represents a significant opportunity for growth, and our team of innovators brings local expertise to a market where understanding the flow of everyday life can help us provide products and services that remove friction from the lives of our customers,” said McMillon.
McMillon said Flipkart’s flagship festive sale ‘The Big Billion Days’ sale was a success again this year, powered by shoppers and sellers from tier-2 cities and beyond with nearly 75 per cent growth in new customers versus last year. “It was great to see record sales in India during The Big Billion Days event,” said McMillon.
Brett Biggs, executive vice-president and chief financial officer of Walmart Inc, said because of calendar shifts, two days of the event affected Q3 net sales this year with the remaining four days to be reported in the fourth quarter. Last year, the entire sales event was reported in Walmart’s Q4 results.
McMillon said that the company also continues to see ‘tremendous growth’ at PhonePe, its digital payments arm. PhonePe competes with Amazon Pay, Google Pay and Paytm.