Last quarter, Walmart revenues received a big boost as shoppers spent their government stimulus inspections on home appliances, electronics, and lawn care products.
Walmart said sales in US stores open for at least one year on Tuesday were up 9.3 percent to $93.3 billion over the three months ended July 31 compared to the same period last year. The online sales of Walmart boomed, rising 97 percent. Walmart’s income rose to $6.4 billion by 79.4 percent.
The firm, the world’s largest retailer, was considered a “key” retailer and remained open throughout the pandemic, even as many retail chains shut down their doors.
Though consumers have been cutting some discretionary spending during the pandemic, they are still purchasing food and household goods. Walmart’s retail company accounts for nearly half the revenue.
But the pandemic has led to a massive increase in costs for businesses like Walmart. The company, the largest private employer in the United States, hired more than 200,000 new workers to help meet increased demand.
Retail analysts say the stimulus package provided by the federal government. And then, increased unemployment benefits by an additional $600 a week boosted Walmart’s sales. The expanded benefits expired in late July.
Walmart’s e-commerce investments paid off last year. In recent years Walmart has established its curbside pickup and home delivery network for grocery stores to compete with Amazon.
Walmart has 3,450 pickup locations, and 2,730 stores offered delivery of food on the same day.
Walmart’s stock rallied around 5% in premarket trading after its earnings report. Heading into Tuesday, Walmart’s stock had gained 14% this year.
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