Things are going well for Walmart’s eCommerce division. Walmart recently announced that its online sales had increased by 27 percent in the first quarter of 2023, while total revenue grew 7.6 percent year over year in the United States. Total sales tallied in at $152.3 billion. International sales also saw significant increases, reported to have seen 25 percent growth for online sales and 12.9 percent growth totaling $26.8 in net sales.
Now a report from Axios says its plans to use drones to make home deliveries is growing, as it has now crossed 10,000 completed deliveries in the last year. This is far more than the reported 100 drone deliveries that Amazon has completed so far. (Note Amazon has only been making drone deliveries for a few months now.)
Walmart’s growth in online sales has to give some credit to Walmart’s pickup services, which are included in the eCommerce sales total. The retail giant offers grocery pickup and/or delivery options at most of its locations which has attracted a lot of online orders. Consolidated operating income was up 17.3 percent to $0.9 billion. Walmart-owned Sam’s Club comp sales showed the 7.0 percent growth was led by food and consumables.
Now Amazon hopes that by using drones to deliver online orders it can speed up the delivery time, cut costs, and grow its online sales. Amazon is hoping to do the same and it is very possible that soon your next package from Walmart or Amazon will be made by drone.
This all comes as Walmart is looking for ways to take market share from Amazon.
CEO and Chairman of Walmart, Doug McMillion was pleased with the first quarter results, saying:
“We had a strong quarter. [Composite] sales were strong globally with eCommerce up 26%. We leveraged expenses, expanded operating margin, and grew profit ahead of sales. And a big thank you to our associates, who continue to step up and deliver for customers and members whenever and however they want to be served.”
“It’s a great time to be a merchant. We continue to gain market share in the grocery category, including with higher income and younger shoppers, and we saw good growth in membership income in both businesses,” Walmart CEO Doug McMillon told analysts on the 1st quarter 2023 earnings conference call.
Now we will have to wait and see how Amazon and Walmart fight it out to use drones to deliver your orders.