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Walmart Inc. Annual Report 2022 - Implications

By: Christopher Wiesler



Introduction:

Walmart Inc. (Walmart) stands as a beacon in the retail sector, dedicated to offering its customers the opportunity to shop both in retail stores and through eCommerce. With a mission to make every day easier for busy families, the company operates with discipline, sharpens its culture, and is becoming more digital. Walmart's commitment to price leadership remains a cornerstone of its business, ensuring customers receive quality merchandise and services at everyday low prices (EDLP). The company's strategy revolves around price leadership, innovation, and a customer-centric approach that integrates eCommerce and retail stores in an omni-channel offering.


Key Financial Highlights:


Walmart's revenue saw a growth of $14 billion year-over-year.

The company increased its dividend for the 49th consecutive year in February 2022.

A capital expenditure (CapEx) of $13 billion was invested for growth.

Walmart's international business focus led to net sales of $74 billion.

The company's club business, one of the fastest-growing formats in retail, reported net sales of $101 billion.

Walmart's eCommerce business achieved $73 billion in net sales.

The U.S. Marketplace added over 20,000 new sellers and approximately 75 million additional SKUs.

Total revenue for the fiscal year was $572.8 billion, with Walmart U.S. comp sales at 6.4%.

The company generated an operating cash flow of $24.2 billion and returned $15.9 billion to its shareholders.

Operational Insights:


Walmart serves approximately 230 million customers weekly, with over 10,500 stores and numerous eCommerce websites under 46 banners across 24 countries.

The company's commitment to EDLP and everyday low cost (EDLC) has been pivotal in earning customer trust and providing a broad assortment of products.

Walmart's operations are divided into three reportable segments: Walmart U.S., Walmart International, and Sam's Club.

The company's eCommerce presence has been expanding, with over 8,000 pickup and 6,000 delivery locations globally. Recent investments in omni-channel and eCommerce innovation have further enhanced Walmart's digital footprint.

Walmart's acquisition of a majority stake in Flipkart Private Limited (Flipkart) has bolstered its international eCommerce initiatives. Flipkart's ecosystem in India includes the eCommerce platforms of Flipkart and Myntra, as well as PhonePe, a digital transaction platform.

Historical Overview:


Walmart's journey began in 1945 when Sam M. Walton opened a franchise Ben Franklin variety store in Newport, Arkansas. By 1962, the company ventured beyond variety stores, opening its first Sam's Club in 1983 and its first supercenter in 1988.

The company's international endeavors started in 1991 with a joint venture in Mexico. As of January 31, 2022, Walmart International operated in 23 countries.

Walmart's foray into eCommerce began in 2000 with the creation of walmart.com and samsclub.com. Over the years, the company has made several eCommerce acquisitions and heavily invested in digital innovation.

Conclusion:

Walmart's annual report underscores its commitment to innovation, customer-centricity, and growth. The company's robust financial performance, combined with strategic investments in eCommerce and international markets, positions it as a leader in the global retail landscape. As the retail sector continues to evolve, Walmart's focus on omni-channel integration, price leadership, and digital expansion ensures its continued relevance and success in serving customers around the world.


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