According to a CNBC report on Tuesday, Walmart e-sales growth stumbled during the holiday season, falling by more than half from the previous quarter. Overall sales for Walmart’s fourth quarter were better than expected, $136.3 billion but the stumble in online sales despite the purchase of Jet.com is ringing alarm bells.
Walmart says it will invest more in its online business and expects growth of 40% in online revenue this year.
Oliver Chen of Cowen & Co. suggested to his clients that people are still underestimating the value of Walmart's store fleet (something Amazon doesn't have). He expects the bricks and mortar element of Walmart will aid the company in fulfilling more grocery orders and same-day deliveries as it adds technology, digitizes the supply chain and continues to merge or acquire its way to a better share of the online business.
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