Walmart just reminded everyone it’s more than a discount retailer. In its earnings, the company reported revenue of $161.5B (vs $159.6B expected) and EPS of $0.60 (vs $0.52 expected). But what’s really interesting is how it’s growing:
- E-commerce surged 21% globally, with strength in store-fulfilled delivery and pickup in the US. Walmart is silently catching up in the Amazon-dominated digital space, especially in groceries.
- More affluent shoppers are switching to Walmart. This shift is key—during economic slowdowns, it benefits from “downtrading,” and right now, even wealthier consumers are buying essentials from Walmart.
- Walmart+ and advertising are growing silently. These segments are helping expand margins without depending on price hikes—a strategic long-term edge.
As the middle-income segment gets squeezed, Walmart’s scale, logistics network, and value positioning make it a defensive play that’s still innovating.