Walmart Enhances Digital Transformation to Elevate Customer Experience
Walmart CEO Doug McMillon announced the company’s financial results for the first quarter of 2024, highlighting how its investment in digital transformation is enhancing the customer experience. While Walmart did not disclose specific figures for its digital transformation investments, Suresh Kumar, the global Chief Technology Officer and Chief Development Officer, is responsible for technology spending.
For the first quarter, Walmart reported revenue of $161.5 billion, a 6 percent increase, driven by a 21 percent rise in eCommerce sales, which were bolstered by store-fulfilled pickup and delivery services, as well as its marketplace. The company's gross margin rate improved by 42 basis points, and operating income increased by $0.6 billion, or 9.6 percent.
“We’re people-led and tech-powered, and that combination is propelling our business,” said Doug McMillon, President and CEO of Walmart. The company is focusing its investments on high-return areas such as automation, store remodels, and digital tools and technologies.
In India, Walmart’s subsidiary Flipkart expanded its same-day delivery service to 20 cities, aiming to reach more customers. In the U.S., Walmart saw a 22 percent growth in eCommerce sales, contributing to an overall growth of 3.8 percent. This growth was led by store-fulfilled pickup and delivery, marketplace operations, and advertising. Both in-store and digital channels experienced significant increases in traffic and sales.
Walmart also reported that its Plus membership program now represents 54 percent of its member base, thanks to increasing digital engagement with its members.