In profits, the supermarket chain pocketed 14,821 million pesos, with a variation of 11.8%, that is, 1,567 million pesos more than in the last line of 2021, while the operating flow or Ebitda was 25,339 million pesos compared to 23,564 million pesos of the previous fourth quarter, that is, an increase of 7.5%.
Performance by region
In Mexico, the retailer’s revenues grew 11.4% driven by strong same store sales growth of 10.2% and the contribution of e-commerce of 0.8% to total sales growth. In amount, it is about sales for 197,856 million pesos and an Ebitda of 21,874 million pesos.
General expenses grew 12.6% and represented 14% of revenues. According to the company, they recorded a non-recurring effect related to the dignified vacation reform, under which associates’ days off increased, along with their vacation bonus.
During the fourth quarter of the year, the Smart Spending program generated 450 million pesos in savings and the increase in the use of its fleet dedicated to reducing trips with spot rates. This program together with operating efficiencies led to a leverage in expenses of 60 basis points.
These savings were invested in strategic enablers such as technology, the associate value proposition and in new stores, since the chain had 60 openings in Mexico, compared to 51 in the fourth quarter of 2021. During 2022, Walmart opened 126 stores in 17 cities. These contributed 1.2% to the consolidated sales growth in the year.
Among them is the first regenerative Bodega in Temixco, State of Mexico, the first regenerative Sam’s Club in Nuevo León and the first regenerative Walmart in Querétaro. These stores are equipped with energy efficiency initiatives and accessibility features for people with disabilities.
In Central America, revenues grew 13.3% driven by double-digit same-unit sales growth. This translates into sales of 39,965 million pesos, an operating flow of 3,465 against the 3,190 obtained in the fourth quarter of 2021, a variation of 13.7%.
Walmart’s other businesses
During 2022, the chain enabled a new lender in the digital credit marketplace in Cashi for 100 Bodega stores and began a pilot test to originate digital credits through CrediBodega. Cashi closed the year with 5.4 million users, which represents a growth of 218% compared to last year.
During the quarter, the first four Bait stores were opened in Mexico City and Querétaro. In these stores, users will access a more convenient and frictionless experience, the company says, and will allow Walmart to expand its reach and reach more customers.
The number of users in this telephone service almost tripled. At the end of the fourth quarter they had 7.8 million total users, of which 5.6 are active. With this figure, they exceed the goal of users that were proposed for 2022.
Regarding Walmart Connect, the company’s advertising division, it grew 15%, supported by a 55% increase in the number of campaigns. Among them related to the soccer world cup for companies like Danone, P&G and Nestlé.
omnichannel strategy
During the quarter, the retailer reached 1,000 stores with its omnichannel strategy. 80% of Walmart Supercenter and Express stores have the express delivery option enabled in 60 minutes, supported by a crowdsourcing model. In the extended catalogue, on the other hand, the number of SKUs increased 70% and the number of sellers doubled compared to the fourth quarter of last year.
For the company, Walmart Fulfillment Services (WFS) is becoming a key model for providing the service customers expect. 33% of marketplace orders were delivered through the logistics network during the quarter. In addition, orders handled by this service arrive at consumers’ homes in half the time they would arrive if they were delivered by other carriers.
In the fourth quarter, online sales grew 13.8% and GMV 13%, reaching a historical share of 5.6%. In the year, online sales grew 16.6% and GMV 19%.
“During 2022, we saw our customers adapt again and change their shopping habits. I am proud of how our team responded to this challenge. We delivered more than 13 million orders during 2022 and the NPS increased 470 basis points,” the company said in its report submitted to the Stock Exchange.
On the other hand, Walmart launched more than 400 new products and the share of sales of its own brands grew 80 basis points, to 15.1%. Sales of its brands in departments such as home grew 4.5 times faster than its brand name products in those departments.
For the fourth consecutive year, the company received the Éntrale badge in recognition of offering job opportunities for people with disabilities. Also the HRC Equidad MX certificate for the sixth time, which certifies it as an inclusive company for the LGBT+ community.
As of December 31, 2022, the company operated 3,745 stores in six countries: Costa Rica, Guatemala, Honduras, El Salvador, Mexico, and Nicaragua, through self-service stores, membership price clubs, and omnichannel sales.