Flipkart leads Q4FY21 international net sales for Walmart

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February 19, 2021 2:45 AM

The CEO said that although the penetration of e-commerce in the country is low, it is growing rapidly. “We are well positioned to grow as an emerging middle class spends more money through mobile phones. In India, our momentum and potential for growth make this a unique opportunity.”

The CEO said that although the penetration of e-commerce in the country is low, it is growing rapidly.The CEO said that although the penetration of e-commerce in the country is low, it is growing rapidly.

Flipkart led international net sales for Walmart during the three months ended January, the US-based retailer said on Thursday. Speaking at the company’s 2021 investment community meeting, president and CEO Doug McMillon said: “This (India) is a market where we will step on the gas to ensure we have the appropriate level of investments in areas like the supply chain.”

The CEO said that although the penetration of e-commerce in the country is low, it is growing rapidly. “We are well positioned to grow as an emerging middle class spends more money through mobile phones. In India, our momentum and potential for growth make this a unique opportunity.”

The company’s international net sales increased by 5.5% year-on-year to $34.9 billion during the November-January period. Net sales in constant currency grew by 6.3% y-o-y to $35.1 billion, led by Flipkart, Mexico and Canada, the company said while announcing the Q4FY21 results. Walmart’s calendar runs from February-January.

Walmart said that “strength in Mexico, Canada and Flipkart” also contributed to the firm’s sales growth for the fiscal year 2021. Net sales increased marginally to $121.4 billion during the year. In constant currency terms, sales rose by a little over 5% to $126.4 billion.

McMillon said the PhonePe business “continues to grow and perform very well”.

In December last year, Walmart led a chunky $700 million capital infusion in the fintech firm at a post-money valuation of $5.5 billion. The Sameer Nigam-led company that has set a stiff target of crossing 500 million registered users by December 2022 was hived off from Flipkart into a separate entity.

Chief financial officer Brett Biggs said the firm expects to see a continued strong growth in the US business in the coming years but an “even higher international growth rate as we focus on key markets and making money in new ways”.

Walmart, which acquired Flipkart in a $16 billion deal in 2018, competes with Amazon and latest entrant Reliance in India. With the Tata Group planning to bet big on e-commerce, the competition is set to intensify. Currently, Flipkart and Amazon dominate the market share.

Walmart reported total record revenues of $152.1 billion in Q4FY21, registering a y-o-y rise of over 7%. For the full year, total revenues stood at a record $559.2 billion. “We accomplished this while accelerating our long-term strategy of transforming Walmart into a dynamic omni-channel business. It’s now time to accelerate even more,” Biggs said.

In a statement, the company said its integrated omni-channel strategy will focus on “enabling the company to diversify the business model by growing related businesses with accretive margins such as marketplace, advertising, financial services and data monetisation” and innovating to enhance a seamless, digital customer experience designed to increase the the share of wallet.

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