Walmart Ecommerce Growth In 2016 Q1 Is Too Slow

Walmart reported 2016 Q1 results this week, and while the company has posted positive results and outperformed the estimates, ecommerce growth has been disappointing. Despite big investment into its websites and the Walmart Marketplace, ecommerce sales rose only 7% in the quarter.

“Growth here is too slow” said Doug McMillon, Walmart CEO.

Walmart ecommerce growth

As you see in the chart compiled by Fortune.com, ecommerce growth has slowed down. Global ecommerce revenue grew 12% last year to $13.7 billion, which is short of the 20-30% growth Walmart has seen in recent years.

In the US, Walmart is the second largest online retailer with $12.5 billion in sales. However number one seller Amazon USA is well ahead with over $82 billion. To catch up with Amazon they need to get closer to the 15% growth rate whole ecommerce industry is growing at.

Big part of Walmart’s recent efforts in growing the Walmart Marketplace is by increasing the size of the catalog. Currently Walmart offers 10 million products. In contrast, Amazon has over 300 million.

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Juozas "Joe" Kaziukėnas

Founder of Marketplace Pulse, Joe wears multiple hats in the management of Marketplace Pulse, including writing most of the articles. Based in New York City. Advisor to other startups and entrepreneurs. Occasional speaker at conferences.

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