Flipkart, PhonePe monthly active customers at ‘all time high’: Walmart
Walmart International on Tuesday reported net sales growth of 1.3 per cent at $29.6 billion, crediting its e-commerce websites in India, Canada, and Mexico for fetching business as consumers move online in the coronavirus pandemic.
Walmart International comprises the retail giant’s operations outside the US, and in India it runs Flipkart, a competitor of USA’s Amazon and Reliance’s JioMart.
“In India, Flipkart and PhonePe had strong results for the quarter. The number of monthly active customers on these platforms is at all-time high,” said Doug McMillon, president and chief executive officer,” Walmart said during the company’s third-quarter earnings results for the fiscal year 2021. PhonePe is the company’s payment app.
In the third quarter, Walmart International’s operating income was $1.1 billion, an increase of 70 per cent compared to the same period last year. Its operating income in constant currency terms was $1.1 billion, an increase of 79 per cent. Walmart International’s gross profit rate increased 90 basis points, primarily due to Flipkart and reduced sales of fuel in the U.K. Also, for Walmart International, e-commerce contributed 14 per cent of net sales, led by omnichannel capabilities. Adjusted operating income was $1.1 billion with an increase of 22.4 per cent compared to the same quarter last year. Excluding currency, inventory decreased 5 per cent, primarily due to timing of the’ Big Billion Days’ event at Flipkart.
“Flipkart continues to perform well and recently completed its best-ever ‘Big Billion Days’ sale event in October,” said Brett Biggs, executive vice president and chief financial officer for Walmart. “Their third quarter GMV (gross merchandise value) continues to reflect strong demand post-Covid lockdowns, with significant growth and monthly active customers.”
E-commerce firms like Flipkart and Amazon witnessed blockbuster festive season sales in India. The online festive sales received a strong response from October 15-19. Estimates by RedSeer Consulting showed that $3.1 billion (Rs 22,000 crore) of goods were sold from brands and sellers in the first 4.5 days of the event.
This means 77 per cent of RedSeer’s projected online sales were already achieved during the said time frame. The firm had earlier projected total festive sales of e-commerce firms to cross $7 billion. The first few days of this year’s online sale season saw a more explosive start compared to last year — and was on track to meet RedSeer’s forecast of $4 billion by end of the event. This would be a 50 per cent growth compared to the initial festive events hosted last year.
Flipkart witnessed at least 40 per cent growth for its flagship festive sale Big Billion Days (BBD) compared to the same event last year, said people in the know. The firm achieved its target in just three days of the week-long BBD, which ended last month. In just two days of the BBD, marketplace sellers witnessed the level of growth they had seen during six days of the event last year.
In July, Walmart led a $1.2-billion round in Flipkart, valuing the e-commerce firm at $24.9 billion.
Judith McKenna, president and chief executive officer of Walmart International, said the group continues to focus on its priority markets globally which include India, China, Mexico and Canada
“Eat at home continues to be the trend everywhere. We are benefitting from supply chains from around the world. There is festival season, from Christmas to Diwali,” said McKenna.
Walmart’s net sales and operating results continue to be affected by the global health crisis. However, increased demand for products across multiple categories led to strongtop-line and gross margin results.
Total revenue was $134.7 billion, an increase of $6.7 billion or 5.2 per cent. Excluding currency, total revenue increased 6.1 per cent to reach $135.8 billion. Operating incomes was $5.8 billion.
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