Walmart, the global retail giant, has experienced a significant boost in its e-commerce business, fueled by the COVID-19 pandemic. Let’s explore how Walmart’s e-commerce ventures, including its partnership with Flipkart in India, have contributed to its recent successes.

Walmart’s Profits and Revenue Growth

• Pandemic-Driven Growth: Amid the pandemic, Walmart’s profits surged by 8.5% to $6.1 billion, accompanied by a 5.6% increase in revenue, totaling $137.7 billion. Notably, same-store sales witnessed a robust growth of 9.3% in the quarter.
• E-Commerce Expansion: Walmart’s e-commerce sales in the US skyrocketed by an impressive 97%, showcasing substantial growth across all channels.

Flipkart’s Post-Lockdown Success

• Exceeding Pre-COVID Levels: Following the easing of lockdown restrictions, Flipkart, in which Walmart holds a significant stake, witnessed a remarkable recovery. Gross Merchandising Volume (GMV) at Flipkart surpassed pre-COVID-19 levels, indicating a strong resurgence in sales.
• Steady Growth: Flipkart reported significant milestones, including surpassing 1.5 billion monthly visits and achieving a 45% increase in monthly active customers, along with a 30% rise in transactions per customer for FY20.
• Strategic Investments: Walmart’s recent $1.2 billion investment in Flipkart underscores its commitment to the Indian e-commerce market. This equity round, combined with Flipkart’s acquisition of Walmart India’s business and the launch of Flipkart Wholesale, further solidifies Walmart’s presence in India’s retail landscape.

Intensifying Competition in India

• Tech Giants’ Interest: Walmart’s reinforcement of its investment in Flipkart coincides with heightened interest from tech giants in India’s retail tech ecosystem. Facebook’s substantial investment in Jio and Google’s discussions regarding significant investments in Jio Platforms are reshaping India’s e-commerce landscape.
• Amazon’s Prominent Role: Amidst increasing competition, Amazon remains a formidable player in India’s e-commerce sector. During July’s sale events, Amazon outpaced Flipkart in smartphone sales, signaling intensified competition between the two e-commerce giants.

In summary, Walmart’s strategic focus on e-commerce, coupled with its partnership with Flipkart, has proven fruitful, with both US and India sales experiencing significant growth despite the challenges posed by the COVID-19 pandemic.