Flipkart continues to see strong sales growth: Walmart

By: |
August 18, 2021 3:45 AM

The US-based retailer, which reported its Q2FY22 earnings during the day, indicated that grocery and fashion segments would be the key growth areas for Flipkart. The e-commerce firm will also continue to build on its supply chain capabilities.

“Flipkart continues to drive strong growth in GMV (gross merchandise value) in line with our high expectations,” said Walmart president & CEO Doug McMillon while speaking at the earnings call.“Flipkart continues to drive strong growth in GMV (gross merchandise value) in line with our high expectations,” said Walmart president & CEO Doug McMillon while speaking at the earnings call.

Flipkart continues to see strong sales growth and an improving trend in the number of monthly active users and customers, Walmart’s chief financial officer and executive vice-president Brett Biggs said on Tuesday.

The US-based retailer, which reported its Q2FY22 earnings during the day, indicated that grocery and fashion segments would be the key growth areas for Flipkart. The e-commerce firm will also continue to build on its supply chain capabilities.

Walmart’s international net sales decreased to $23 billion in the May-July quarter from $27.2 billion in Q2FY21, registering a y-o-y decline of 15.2%. The company said segment sales were “negatively affected by $8.9 billion related to divestitures”.

“Flipkart continues to drive strong growth in GMV (gross merchandise value) in line with our high expectations,” said Walmart president & CEO Doug McMillon while speaking at the earnings call.

Last month, Flipkart raised an enormous $3.6 billion in a fresh funding round from a clutch of investors led by GIC, Canada Pension Plan Investment Board, SoftBank Vision Fund 2 and Walmart at a post-money valuation of $37.6 billion. The fresh capital will be used to fund growth of new product categories, strengthen the firm’s infrastructure and supply chain, besides building on its technological capabilities, Flipkart had said.

A recent report by Bain & Company said India’s e-retail market is expected to grow by 25%-30% annually over the next five years to touch $120-$140 billion by FY26, surpassing modern trade. Flipkart and Amazon command a sizeable share of the local e-commerce market, which is seeing stiff competition from new entrants like Reliance and the Tata Group.

As online commerce expands its market share, local authorities are working on a set of sectoral rules to ensure that there is a level playing field between online and offline retail. Flipkart and Amazon have also come under the CCI (Competition Commission of India) scanner for its alleged anti-competitive business practices.

McMillion said Walmart’s global e-commerce sales are on track to reach $75 billion by the end of the year “further strengthening” its position as a “leader in omnichannel”.

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