The omnichannel strategy
Walmart continues to grow and expand the number of stores enabled with the on-demand service, as well as improving delivery times. Currently, 980 stores have this service in more than 200 cities.
To improve the user experience on apps and websites, the company has enabled a feature called Forgot Something?, which reminds customers of items they may have forgotten. This new feature is helping them increase the average ticket and, consequently, sales. In the last three months, sales of Despensa a tu casa grew almost 180%.
On the other hand, in May Walmart Pass had a 30% share. The frequency was almost two times higher than that of users who do not have the subscription. In addition, the retailer implemented the delivery service in 60 minutes in more than 280 stores. The company is using machine learning to provide a more accurate delivery promise that allows them to increase customer satisfaction.
And despite last year’s growth base and changes in buying habits, the e-commerce business continues to grow, as during the quarter sales of e-commerce increased 18%, resulting in a 0.9% contribution to growth in total sales. E-commerce sales represented 5.2% of Mexico’s sales.
On the other hand, the number of Cashi users doubled during the first half of the year, reaching 3.4 million. As for Bait, at the end of the second quarter they reached more than 4 million accumulated users, and in addition to its prepaid telephony and connectivity offer, the retailer is testing a model for companies in which they can provide strategic partners with a service lower cost.
Regarding the advertising division, Walmart Connect launched a new product to offer a broader selection of solutions: mobile advertising through Bait. The goal is for customers to be able to reach millions of users through text messages and push notifications, or target specific audience segments, thereby increasing the efficiency of their investments.
The operation in Central America
According to the report sent to the Stock Exchange, the countries of the region had double-digit growth in sales to equal units, resulting in a total growth of 14.6% in Central America.
The company is focused on driving the growth of the Bodega and Discount formats and simplifying its business. To this end, they are carrying out various actions to improve the shopping experience, including standardizing the communication of the campaigns to give a clear message to customers, as well as the perception of the price.
In addition to that, they are optimizing the catalog by reducing the number of items and increasing inventory turnover. Sales share increased 180 basis points versus the second quarter of 2021, indicating that the double-digit growth trend continues.
The ‘Champion Quetzales’ and ‘What you need paying less’ campaigns were well received by consumers in the region, resulting in a 25% growth in sales during the execution of these initiatives.
Total revenues were 33,032 million pesos, that is, they grew 15.3%. while the operating flow was 2,944 million pesos, with a variation of 18.7%.
The company’s goal is to double total sales in 10 years and leverage operating expenses to invest in the business. Sales growth will come from same unit sales, new unit sales and e-commerce.
During the quarter, Walmart opened 20 new stores: 19 in Mexico and one in Central America, the contribution of these new points of sale to the consolidated growth of total sales was 1.2%. As of June 30, 2022, the company operates 3,651 units in six countries: Costa Rica, Guatemala, Honduras, El Salvador, Mexico and Nicaragua.