Walmart (WMT.N) still expects to double the amount of total merchandise volume it sells in foreign markets to $200 billion within the next five years, a senior executive at the retailer said on Friday, despite the uncertain state of the global economy.
Gross merchandise volume (GMV) indicates the total value of all products sold through a platform or marketplace, which for Walmart includes its Cashi digital payments app platform in Mexico and its Flipkart marketplace in India.
“It is a fairly ambitious goal. Walmart International’s chief executive officer, Judith McKenna, told analysts at a meeting in Fayetteville, Arkansas, near the company’s Bentonville, Arkansas, headquarters that “the markets we have today have plans to get there.”
Friday, in conjunction with the retailer’s annual shareholders meeting in Bentonville, the analysts meeting and a press presentation by Walmart CEO Doug McMillon were held.
The global gross merchandise of Walmart is expected to double in the next five years.
Walmart International generated approximately $120 billion in GMV five years ago. However, following the sale of its enterprises in Brazil, Argentina, Japan, and the United Kingdom, that figure dropped to $100 billion for the fiscal year ending January 31, 2023.
McKenna first declared the expectation of tripling Walmart’s international GMV in April. Even though the International Monetary Fund revised down its global economic growth forecasts for 2023 and 2024, citing persistent inflation, she remained confident on Friday.
In recent years, Walmart’s business model has shifted to place a greater emphasis on omni-channel, a strategy that integrates its e-commerce, delivery, advertising, and marketplace businesses. McKenna stated that Walmart’s enormous size and technological scope will allow it to implement this strategy more rapidly.
McKenna stated that she anticipates Walmart’s growth to result from implementing the omni-channel strategy globally, scaling existing and new marketplaces in the 19 foreign countries in which it operates, and constructing a complementary business “ecosystem” similar to the one it has in Mexico.
Walmart offers financial services through its Cashi app, telecom services through BAIT, and healthcare services in the country.
Walmart’s omni-channel efforts have been a benefit for the retailer as recession concerns drive more Americans to seek bargains in groceries. According to the company, inflation continues to be persistent in the dried goods market.
Walmart and other retailers are revising their pricing strategies for clothing, household goods, and other discretionary items, or are offering more discounts, as families spend a larger portion of their budgets on food.
McMillon told reporters that low prices will be offered during the forthcoming back-to-school season to encourage consumers to open their wallets. McMillon added that Walmart will concentrate on low prices for notebooks, pens, and pencils and offer a lot more quantity and options from which customers can choose based on their budget.