Within all grocery chains in the U.S., Walmart is further increasing its sales like any other. More people are buying food at this store on a daily basis; it’s expanding and growing impressively. The retailer’s annual sales are about $170 billion, and they have been permanently increasing in the last five years.
It’s the largest grocery store in the United States, now competing and in the wait for Amazon’s proposal of a grocery store. Both of them – in stores and online – are adding more organic produce, but only Amazon is willing to buy Whole Foods Market for $13.7 billion, along with European chains like Aldi and Lidl, which are taking presence in the United States.
Both Lidl and Aldi are German food retailers expanding in the country, overhauling many stores. However, Walmart still gets 56% of annual sales from groceries, making the category vital for the company’s well faring.
Food sales make up more half of Walmart’s revenue
The big supermarkets get half of their sales from food, earning $200 billion each year, said Joseph Feldman, an analyst at Telsey Advisory Group in New York. He compared it with the second-largest grocery store of the country, Kroger, which brought in $115.3 billion last year.
“There’s been a real effort to improve fresh foods — produce, meats — and they’ve been very aggressive in keeping prices low,” Feldman said. “Big picture, we’re feeling pretty good about Walmart.”
Walmart.com is considered the second-largest online grocer in the US, whose e-commerce sales increased by 60 percent in the latest quarter. It’s now trying how it goes for them with grocery delivery in New York City.
According to a Walmart spokeswoman, the grocer has created its own “designer” cantaloupe, which people say tastes as good and sweet in the summer as it does in the winter. Also, they are aiming to create and develop a more flavorful tomato. The company has also expanded its lineup of exclusive snacks, including Oreo O’s cereal and Jelly Donut Oreos.
Walmart has spent millions on improving its groceries
The company is leading a strategy for finding more buyers, according to Walmart U.S. CEO Greg Foran. Walmart will make substantial changes to the way the store looks: placing vegetables close the entrance of the store, highlighting their color to create a visual pop, and even stopping using black crates and start finding others that look like if they were made of wood.
“The second-quarter numbers show that Wal-Mart remains firmly on the front foot and is more than holding its own in a challenging and competitive retail market,” said GlobalData Retail Managing Director Neil Saunders.
Walmart’s total revenue rose 2.1 percent to $123.4 billion in last year. According to the company, It would have been up 2.9 percent without the effects of currency fluctuations.
Source: The Washington Post