Walmart reported earnings Tuesday, and the retailer is killing it. E-commerce sales are up 97%, and same-store sales are up 9.3% in the second quarter. It looks as if Walmart is doing something right in this pandemic economy.
If retail in America is a giant consumerism pie, then Walmart’s slice is getting bigger.
“Walmart is gaining share in pretty much every category,” said Charlie O’Shea, senior retail analyst at Moody’s.
Part of Walmart’s success has to do with what it is selling: essential goods that people still buy during a pandemic, like groceries. Walmart’s food operation is huge at $184 billion in sales last year, nearly one and a half times Kroger’s sales.
“Anywhere between 55% and 60% of Walmart’s business would normally be consumables,” O’Shea said.
The other key to Walmart’s success — probably the bigger key — is the many way in which Walmart sells. It provides online ordering, delivery, pick up at the curb and in-store shopping.
“They made a full-court press on e-commerce very successfully,” said Sayan Chatterjee, a professor at the Weatherhead School of Management at Case Western Reserve University.
However customers want to hand over their money, Walmart was ready even before the pandemic. Finally, Walmart has something else to thank for its success, according to Andrew Lipsman, principal analyst at eMarketer. That would be the government.
“Government stimulus checks and unemployment assistance — those dollars are probably more likely to get spent at Walmart than at any place else,” Lipsman said.
Lipsman added Walmart’s success is emblematic of a bigger trend in the pandemic. It’s the biggest stores that have been able to lean into the moment and adapt. Smaller and medium-size businesses are buckling.
What’s going on with extra COVID-19 unemployment benefits?
The latest: President Donald Trump signed an executive action directing $400 extra a week in unemployment benefits. But will that aid actually reach people? It’s still unclear. Trump directed federal agencies to send $300 dollars in weekly aid, taken from the federal disaster relief fund, and called on states to provide an additional $100. But states’ budgets are stretched thin as it is.
What’s the latest on evictions?
For millions of Americans, things are looking grim. Unemployment is high, and pandemic eviction moratoriums have expired in states across the country. And as many people already know, eviction is something that can haunt a person’s life for years. For instance, getting evicted can make it hard to rent again. And that can lead to spiraling poverty.
Which retailers are requiring that people wear masks when shopping? And how are they enforcing those rules?
Walmart, Target, Lowe’s, CVS, Home Depot, Costco — they all have policies that say shoppers are required to wear a mask. When an employee confronts a customer who refuses, the interaction can spin out of control, so many of these retailers are telling their workers to not enforce these mandates. But, just having them will actually get more people to wear masks.
You can find answers to more questions on unemployment benefits and COVID-19 here.
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