Walmart still hopes to double the volume of raw goods it sells in overseas markets to $200 billion in five years, a senior retailer executive said Friday, even as the global economy remains faltering.
Gross Merchandise Volume (GMV) measures the total value of all goods sold through a platform or marketplace, which in Walmart’s case includes its Cashi digital payment platform at Mexico and the Flipkart marketplace in India.
“That’s a pretty ambitious goal. The markets we have today have plans to get there,” Judith McKenna, CEO of Walmart International, told analysts at a meeting in Fayetteville, Arkansas, near headquarters. of Bentonville from the world’s largest retailer in terms of turnover.
The analyst meeting and a press briefing by Walmart CEO Doug McMillon took place on Friday, alongside the retailer’s annual shareholder meeting in Bentonville.
Five years ago, Walmart International generated approximately $120 billion in GMV. But after divesting its operations in Brazil, Argentina, Japan and the UK, that figure fell to $100 billion for the year ending January 31, 2023.
In April, Ms. McKenna announced for the first time that she hoped to double Walmart’s GMV overseas. She expressed confidence on Friday, even as the International Monetary Fund lowered its global economic growth forecast for 2023 and 2024, citing persistent inflation.
Walmart’s business model has evolved over the past few years, with an emphasis on omni-channel, a strategy that combines e-commerce, delivery services, advertising and marketplaces. McKenna says Walmart’s gigantic size and technological breadth will give it the means to implement this strategy more quickly.
McKenna expects Walmart’s growth to come from implementing omnichannel strategy globally, expanding existing and new marketplaces in the 19 foreign countries where the company operates , and the creation of a complementary commercial “ecosystem”, like the one it has in Mexico.
In addition to selling everyday goods through brick-and-mortar stores in Mexico, Walmart offers financial services through its Cashi app, telecommunications services through BAIT, and has now started offering healthcare services in the country.
Walmart’s omni-channel efforts have been a boon for the retailer as recession fears drive more Americans to seek bargains in groceries. According to the company, inflation persists in dry groceries. With families spending more of their budget on food, Walmart and other retailers are rethinking the way they price clothing, household items and other staples, or resorting to more discounts .
To entice customers to open their wallets, McMillon told reporters, the company will offer low prices for the upcoming back-to-school season. Walmart will focus on low prices for notebooks, pens or pencils and offer many more quantities and alternatives that shoppers can choose from depending on their budget, McMillon added.
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