U.S. e-commerce as a share of Walmart’s total sales reached a record 23% in the fourth quarter after growing 27% year over year and drove the majority of its sales growth, underscoring the retail titan’s ability to compete with Amazon in the online and delivery space.
For the full year, e-commerce sales exceeded $150 billion for the first time, up 5.5% from two years ago, Walmart (NASDAQ: WMT) said in its fourth-quarter earnings report on Thursday. The e-commerce operation has well exceeded the breakeven level. Management said e-commerce was profitable each quarter last year in the U.S. market, with roughly double-digit incremental margin growth as the company enjoys the economies of scale from its marketplace infrastructure.
Online sales were a mix of store-fulfilled pick up and delivery, as well as the third-party marketplace. In the United States, sales through store-fulfilled delivery channels grew more than 50%. Marketplace sales were up 20%, with a record 52% of sellers utilizing Walmart fulfillment services.
Customers took advantage of Walmart’s fast-delivery service, with orders delivered in under three hours increasing more than 60% for the year, President and CEO John Furner said during a call with analysts. At Walmart U.S., 35% of store-fulfilled orders were delivered in under three hours in the fourth quarter. And the company is averaging delivery in less than an hour when customers opt for express delivery
A new AI-powered agentic shopping assistant called Sparky is helping U.S. customers fill their digital cart with an average order value about 35% higher than non-Sparky customers.
“When Sparky builds a basket, we execute it through fast delivery, pickup, or in store, turning AI engagement into immediate physical outcomes. And as we expand Sparky across experiences like voice, in store, and through services, we expect continued acceleration in customer adoption and the impact on commerce,” said Furner.
Walmart’s e-commerce sales globally increased 24%, with the international business lagging the U.S. at 17% growth. In China, e-commerce sales grew 28% and represented more than 50% of the sales mix in that market. Flipkart, an e-commerce and quick-delivery platform in which Walmart owns a more than an 80% stake, is delivering orders in less than fifteen minutes across more than 30 cities in India. And Sam’s Club U.S. doubled growth in club-fulfilled delivery sales, according to management.
During the previous quarter, the retailer’s e-commerce sales increased 27% year over year.
Overall, Walmart said quarterly revenue increased 5.6% to $190.7 billion. Operating income was $800 million, up 10.8%. Net sales for Walmart U.S. was $129 billion. For the full year, operating income only grew 1.6% to $500 million because Walmart recorded two quarterly losses.
