We reported earlier this week that the Walmart strategy might be failing when it comes to e-commerce. However, we did also mention that Walmart’s own e-commerce growth is absolutely fine as we have seen more than 30% growth in every quarter from the company. But the strategy is on the part of Walmart’s other ventures which are not growing as expected and even making losses to an extent. Now, this news report is also regarding Walmart which is good and bad for them. First of all, Walmart has once again reported growth in the e-commerce space which is higher than expected.
As per this report, Walmart’s e-commerce in the third quarter of 2019 grew by 41% which is higher than the market’s expectations from them. Also, Walmart said that they are expecting its business to grow by 35% overall in the year and it also going to reveal its earnings for the year and also the last year by tonight. However, the part that investors are more interested in is not regarding Walmart’s growth but regarding signs as to when Walmart will grow profitable.
Because at the moment, it looks like Walmart is making losses despite the growth it has had in the e-commerce business. It is also believed that Walmart’s shares could go down if the company is not able to satisfy the investors by showing profits and the growth figures for the year.
Interestingly, the numbers from Walmart show that the losses for the e-commerce business grew as its online sales growth. If these losses continue to rise for Walmart, it might be seen as a very bad sign for investors. However, Walmart might make its investors happy if the losses are stemmed. One of the reasons behind losses for Walmart is because of the spends it is doing to compete and grow against Amazon.