Walmart said its fiscal 2020 e-commerce revenue growth will be about 35 percent, as the company balances omnichannel bets with current profits.
The retailing giant is holding its annual analyst get-together with CEO Doug McMillon and other executives. McMillon noted the company can leverage its "unique omnichannel assets" to grow.
Walmart has been investing its logistics, e-commerce capabilities and acquisitions such as Flipkart. The company is also using its heft to boost assortment and keep prices low.
The company also said that 3,100 stores will have grocery pickup and 1,600 will have grocery delivery by end of the fiscal 2020. Walmart recently reported second quarter fiscal 2019 results.
As for the outlook, Walmart said overall sales growth will be about 3 percent in constant currency with Walmart US same store sales about 2.5 percent to 3 percent. E-commerce sales growth will be about 35 percent.
McMillon outlined a bevy of innovations and technology moves by Walmart in recent years. He also outlined how Walmart is looking to build an ecosystem that adds up to a omnichannel retail flywheel. A graphic in McMillon's 45-slide presentation highlighted what Walmart is ultimately going for as it competes with Amazon.
Mark Lore, Walmart's e-commerce chief, walked through the strategy and made the following points:
- E-commerce sales for Walmart U.S. is estimated to top $15 billion for fiscal 2019.
- The company is working on fundamentals such as having the right inventory, enabling customers to find it, low prices and delivering it as fast as possible. These moving parts add up to CVI, which stands for Walmart's customer value index.
- Walmart has added 40 to 50 new SKUs each month, launched a next-gen dashboard and added 2,000 new brands to the site.
- Delivery variable cost per unit has improved 10 percent.
- About 60 percent of Walmart's customer base will have same day delivery in fiscal 2020.
Also: PayPal partners with Walmart to offer in-store balance withdraws, deposits | Walmart bets on Microsoft Azure, Microsoft 365 in strategic cloud partnership | Walmart to launch Netflix rival under Vudu brand this year CNET | Walmart's next healthcare move: Using data to identify bad doctors
Walmart added that earnings will decline by low single digit percentage rate relative to adjusted fiscal 2019 results. International growth will be up about 5 percent with help from the Flipkart purchase.
According to Walmart, capital spending for fiscal 2020 will be about $11 billion with store remodels, e-commerce, technology and supply chain big ticket items.
- Cashier-less: The Microsoft-Walmart talks explained
- Dear Walmart, you don't have to copy everything Amazon does
- Why Walmart could get severe indigestion from its Flipkart
- Walmart steps up Amazon battle with nationwide grocery deliveries
- Walmart store-scanning robot gets big boost
- Walmart deploys 17,000 Oculus Go headsets to train its employees
- Walmart changing legal name as its digital strategy ramps up