Walmart’s Ad Business Grows 30% Despite Broader Slowdown

The following are some of the report’s impressive statistics

  • In fiscal 2021, Walmart’s net sales in the United States were $370 billion. That is up 8.6% from $341 billion in fiscal 2020. 
  • E-commerce sales accounted for 11.6 percent ($43 billion) of Walmart’s $370 billion in total net sales in fiscal 2021. That is up from 7.1 percent ($24.1 billion) in fiscal 2020.
  • Despite $4 billion in COVID-19-related penalties, Walmart’s operating expenditures. As a percentage of net sales remained stable in fiscal 2021 compared to fiscal 2020. The company attributed the stability to similar substantial revenues and lowered business restructuring costs to the previous year.
  • Walmart claims that 54 percent of its 2.3 million worldwide employees are female. In the United States, ethnic diversity identifies by 47 percent of the 1.6 million workers. (Walmart CEO Doug McMillon said that 34% of Walmart management personnel in the United States are people of color.) Walmart’s board of directors includes three women and two people of color.
  • Low prices, more convenience: Walmart said, “We’re maintaining our daily low-price discipline while investing in our omnichannel offering.”
  • Walmart indicated that rather than new store or club openings, most of the over $14 billion in capital expenditures planned for fiscal 2022 would go into e-commerce, technology, supply-chain innovations, and retail remodels. Of all 50 states, California has the highest proportion of smaller-format Walmart stores (mostly Walmart Neighborhood Markets) to Supercenter locations. Second place goes to Arkansas, Walmart’s home state.
  • Full-time hourly associates got $1,200 in additional monetary incentives during the COVID-19 outbreak; part-time hourly workers received $600.
  • According to an earnings report, Walmart’s overseas advertising business grew 30% year over year in the most recent quarter. The item stood out in a statement that fell short of Wall Street’s expectations.
  • Walmart Connect, the retailer’s ad unit, flourished as self-service capabilities and new goods were added. According to officials, Walmart Luminate, a customer data-sharing platform it launched. With Dunnhumby in October, had a more than 75% year-over-year increase.
  • However, certain aspects of digital are stagnating, with e-commerce only increasing by 1% in Q1. Walmart’s core business may encounter further instability as it confronts inflationary, labor, and supply chain issue.

Current Scenario

According to Walmart, total sales increased 0.5 percent to $152.87 billion in the fourth quarter ended Jan. 31, up from $152.08 billion a year earlier. In constant currency, revenue rose 0.6 percent to $153.03 billion.

Walmart’s revenues were $572.75 billion, up 2.4 percent from $559.15 billion in 2021. In constant currency, revenue climbed by 1.6 percent to $568.19 billion. According to the company, international divestitures harmed sales of $10.2 billion in the fourth quarter and $32.7 billion overall. Among them are transactions in the United Kingdom, Japan, Argentina, and Brazil.

Like many other businesses, Walmart was hit hard by inflation in the first quarter, and operations were a disaster. Following employees’ faster-than-expects return to work following absences during COVID-19’s omicron rush. Company owners cited higher costs for containers, storage, and gasoline and a more significant burden of compensation expenses. E-commerce, which had had strong growth earlier in the pandemic, came to a halt as brick-and-mortar businesses recovered. A Walmart fulfillment center was recently damage by fire.

Despite the challenges, Walmart’s ad business advertising division shows promise at a time when advertisers are increasing their digital spending. Walmart Luminate, a collaboration with data science firm Dunnhumby, has gained traction quickly. Highlighting how companies are looking for new data sources as they prepare to phase out third-party cookies next year.

“Our new data monetization business, continues to increase with over 75 percent growth”. Walmart Chief Financial Officer Brett Biggs said on a conference call with investors. Use our platform to take advantage of new consumer data.”

Walmart Luminate, according to Adweek, bolsters the retailer’s burgeoning demand-side platform (DSP) (DSP). Originally made available to a select group of partners in October. The Walmart DSP provides broad access to The Trade Desk’s ad inventory. A crucial part of Walmart’s strategy is to focus more of its advertising efforts on automation. Automated channels accounted for about half of Walmart’s ad income in the fourth quarter.

Walmart’s concerns are similar to those of rivals, increasing their advertising budgets. Amazon’s pandemic-fueled growth slowed in Q1, with its advertising services division rising.  23% year over year to $7.87 billion, falling short of analyst expectations.

In March, Walmart announced a plan to extend its advertising offerings in 2022. More premium ad experiences are develop, including on-site video advertising on Tested later this year, and new formats for connected T.V. and digital video.

Walmart’s ad business in fiscal year in the United States in 2022.

Despite a revenue impact from international divestitures, Walmart forecasts significant sales growth in its U.S. divisions for the fourth quarter and fiscal year 2022, above Wall Street’s profit expectations.


At the end of the previous year, Walmart had 10,566 locations, including 4,742 Walmart stores in the United States; 600 Sam’s Club locations, and 5,224 international locations. At the end of the current fiscal year 2022, the company has 11,443 stores worldwide.  Including 4,743 Walmart stores in the United States, 599 Sam’s Club locations, and 6,101 international locations.

According to Walmart’s most recent financial release, Walmart Connect generated $2.1 billion in income in 2021, with the number of brand partners utilizing the program increasing 136 percent year over year. Walmart reports its advertising business as net revenues or a reduction in the cost of sales. Depending on the terms of the arrangement with the brand.

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