Walmart is on fire with its e-commerce growth, having posted in excess of 50% growth year over year for the past three quarters. And the holiday quarter is just getting warmed up – their second one after the Jet.com acquisition, I should add.
E-commerce sales volume grew nearly 30% during the last holiday season – impressive in its own right since they’d only owned Jet.com for less than a year.
From a low of 7% growth in the first quarter of 2017, Walmart’s growth is now consistently in the mid-double-digit range, and it’s all thanks to the acquisition of Jet.com during the second quarter of 2017. More to the point, it’s their bringing on board of Jet.com CEO Marc Lore to head their e-commerce division that’s worked all the magic we’ve seen so far.
In its most recent quarter (Q3-2018), Walmart record a 50% growth over the year-ago period.
Considering the fact that e-commerce sales volume suddenly spiked in Q1-2018, we might only see one more quarter of such high growth levels. As scale catches up to Walmart, things may slow down.
But there’s a case against that assumption as well, and it’s called Amazon. Despite growing to $95 billion in retail sales in North America over the past 12 months, the segment is still growing at enviable double-digit rates.
A little math will reveal that Walmart should be comfortably above $20 billion in online sales on a TTM (trailing twelve months) basis.
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