Major international grocery chains Walmart and Loblaw saw increased sales revenue and operating income in 2023, posting strong performances despite consumer concerns about inflation.
Walmart International reported its total revenue increased 10.6 percent to USD 111.7 billion (EUR 108 billion) in FY 2024 – the full-year period ending 31 January. That total was boosted by USD 31.2 billion (EUR 28.8 billion) in revenue in Q4 – an increase of 13 percent year over year.
Walmart U.S. also saw its sales grow, increasing by 5 percent to USD 441.8 billion (USD 408.2 billion) and capped off by a 3.4 percent increase in Q4 to USD 117.6 billion (EUR 108.7 billion). Walmart-owned, membership-only warehouse outlet Sam’s Club also saw its sales grow to USD 86.2 billion (EUR 79.6 billion), marking a year-over-year increase of 2.2 percent.
As for operating income, Walmart U.S. saw a 7.4 percent increase, rising from USD 20.6 billion (EUR 19 billion) to USD 22.2 billion (EUR 20.5 billion). Walmart International’s operating income also grew, rising 65.6 percent from USD 3 billion (EUR 2.7 billion) to USD 4.9 billion (EUR 4.5 billion) in FY 2024.
Across the multiple categories covered by the retail giant, Walmart’s e-commerce growth stood out, growing 44 percent internationally and 17 percent in the U.S. as more shoppers chose pickup and delivery options.
“We crossed USD 100 billion (EUR 92 billion) in e-commerce sales and drove share gains as our customer experience metrics improved, even during our highest-volume days leading up to the holidays,” Walmart CEO Doug McMillon said in a release.
Elsehwere in the company, Walmart International’s advertising business grew 76 percent, while Walmart U.S.’s “Walmart Connect” advertising sales grew 22 percent in FY 2024.
For the near future, Walmart will have to grapple with food deflation impacting sales growth and fluctuations in consumer spending habits, Insider Intelligence Analyst Blake Droesch said in a statement provided to SeafoodSource. However, the company’s e-commerce and advertising business “will continue to be highlights in 2024, and they will grow faster than their competitors in both of these areas,” Droesch added.
Meanwhile, Brampton, Ontario, Canada-based Loblaw Companies, which operates around 2,500 stores in Canada, also had revenue and operating income gains and announced it is planning to invest more than CAD 2 billion (USD 1.5 billion, EUR 1.4 billion) in the Canadian economy this year.
Loblaw said its revenue increased 5.4 percent in 2023 to reach CAD 59.5 billion (USD 44.1 billion, EUR 40.7 billion). Food retail same-store sales rose 3.9 percent, while its drug store sales grew by 5.4 percent.
The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for FY23 increased to CAD 6.6 billion (USD 4.9 billion, EUR 4.5 billion), marking an increase from the CAD 5.9 billion (USD 4.4 billion, EUR 4.1 billion) posted in FY 2022.
Similar to Walmart, the retailer’s e-commerce sales also increased last year, rising 10.7 percent to approximately CAD 3.3 billion (USD 2.4 billion, EUR 2.3 billion).
Loblaw said it plans to build more than 40 new stores, expand or relocate 10 stores, and renovate more than 700 other stores. As a result, the retailer expects to create more than 7,500 jobs in Canada.
“This year, we are investing where Canadians need it most. We will introduce more than 40 new discount stores and 140 new pharmacy care clinics in communities across the country, making healthcare and affordable food more accessible to more people,” Loblaw President and CEO Per Bank said. “These investments in Canada are a catalyst for job growth and the creation of countless opportunities in our stores, in our company, and with the many partners who work with us."
