Grocery is shining for Wal-Mart Stores Inc.
During its second quarter earnings call on Aug. 17, the Bentonville, Ark.-based company reported positive same store sales for the 12th quarter in a row, but the real bright spot was online.
E-commerce grew 60% during the quarter, which ended July 28, said president and CEO Doug McMillon said on the call. Some of the growth was attributed to the company acquiring online retailers including ShoeBuy.com and Bonobos, but it was organic growth in grocery that has the company optimistic.
“We’ve seen strong results from the rollout of online grocery,” which is now in more than 900 U.S. locations, and we’re expanding this service in many of our markets around the world,” McMillon said, during the call.
Wal-Mart also expects to expand its options for customers to get their groceries.
“We’re testing associate delivery of Walmart.com orders in a few stores, and by the end of the year, we’ll have approximately 100 automated pickup towers in stores across the U.S., where customers can pick up their orders within a matter of minutes,” McMillon said.
Pick-up and online grocery have big potential for Wal-Mart, he said, considering the company’s reach.
“Having stores within 10 miles of approximately 90% of the U.S. population allows us to serve customers in ways that are most convenient for them,” he said.
The company also is on track for its employee academies, which include enhanced fresh produce training. To date, 175 out of the 200 planned for this year are up and running.