A top executive said Friday, despite a weak global economy, Walmart (WMT.N) intends to double its foreign gross merchandise volume to $200 billion in five years.
Walmart’s Cashi digital payments program in Mexico and Flipkart marketplace in India assess gross merchandise volume (GMV).
The goal is lofty. At a meeting in Fayetteville, Arkansas, near Walmart International’s Bentonville headquarters, CEO Judith McKenna told investors, “The markets that we have today have plans to be able to get there.”
Walmart CEO Doug McMillon attended a press conference and analysts meeting in Bentonville on Friday during the retailer’s annual shareholders meeting.
Walmart International had a $120 billion GMV five years ago. In the year to Jan. 31, 2023, it dropped to $100 billion after selling its businesses in Brazil, Argentina, Japan, and the UK.
McKenna predicted double Walmart’s foreign GMV in April. Even though the International Monetary Fund cut its 2023 and 2024 global economic growth predictions due to inflation, she remained confident on Friday.
Walmart’s business model has shifted to omnichannel, integrating its e-commerce, delivery, advertising, and marketplace businesses. McKenna said Walmart’s size and technology would help them grow this strategy faster.
McKenna anticipates Walmart’s growth from executing the omnichannel approach globally, scaling existing and new marketplaces in its 19 foreign markets, and establishing a complementing business “ecosystem” like Mexico’s.
Walmart sells common things in Mexico through brick-and-mortar stores, offers financial services through its Cashi app, telecom services through BAIT, and now healthcare services.
Walmart’s omnichannel efforts have helped the firm as recession fears drive Americans to shop for groceries on sale. However, the business stated dry grocery inflation persists. As a result, Walmart and other retailers are revising their clothes, home, and other discretionary product prices or offering bigger discounts as families spend more on food.
McMillon told reporters the corporation would provide low prices for back-to-school to entice customers. McMillon stated that Walmart would offer more notebooks, pens, and pencils at reasonable prices so buyers may choose according to their budget.
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