The majority of the businesses are suffering from a massive amount of losses because of the quarantine effect. Meanwhile, Walmart, the biggest retail giant, released its first-quarter earnings report of 2020, which shocked some analysts. Walmart earned a revenue of $134.6 billion, which is up by 8.6% as compared to the previous year’s first quarter. There are various behind the increase in this revenue, but the major one is Walmart’s transitioning into the e-commerce sector more. After a costly buyout of Jet.com for which Walmart paid nearly $3.3 billion in 2016, the retail giant finally decided to let it go down.
The company has finally integrated Jet.com into Walmart’s brand since they are more focused on it. Still, in between the hard times, Walmart’s e-commerce business has nearly grown by 74% as compared to the previous year’s same quarter. The lockdown is positively affecting the company’s operations. Since the demand for e-commerce is increasing every day, people are ordering many things online by avoiding social gatherings. E-commerce sector is still not profitable for Walmart, but one thing they have successfully managed to do is lower the losses. Every year Walmart is succeeding in reducing the losses in its e-commerce sector. The report shows that the company’s e-commerce might have booked losses of $2 billion.
Walmart is trying to integrate offline business online to increase the number of sales, going ahead of its competitor. Walmart has a good advantage of having bing stores, and they are going to integrate it with e-commerce platforms. Another significant benefit that Walmart had in between the last three months is the impact of the Coronavirus outbreak. The demand for necessities and other items has increased significantly because of which sales have gone up by a significant percentage.