Walmart (WMT) investor relations material

Marketplace growth drivers and performance

• Marketplace achieved over 50% growth in Q1 and Q2, driven by investments in assortment, pricing tools, speed, and discovery mechanisms.

• Fulfillment Services and next-gen fulfillment centers enable higher conversion rates and faster delivery, with ads further boosting product discovery.

• Expansion of assortment, including new brands and categories, attracts new customers and increases penetration among higher-income households.

• International expansion leverages the same playbook in Canada, Mexico, and Chile, opening U.S. assortment to these markets.

• Integration with stores transforms them into fulfillment nodes, supporting rapid delivery and enhancing the customer experience.

Competitive differentiation and ecosystem integration

• Marketplace differentiates through a unique combination of broad assortment, extensive store network, and advanced supply chain capabilities.

• General merchandise dominates Marketplace, with strong growth in fashion, home, electronics, and toys, supported by targeted ads and organic search.

• Stores serve as both retail and fulfillment nodes, enabling fast delivery and seamless integration of first-party and third-party products.

• Forward-deployed inventory in stores allows for rapid order fulfillment and supports a blended model of suppliers and sellers.

• Sellers and suppliers increasingly cross over, with brands testing products on Marketplace before moving to shelves and vice versa.

Monetization, advertising, and fulfillment services

• Marketplace is central to higher-margin revenue streams, acting as the engine for growth in advertising and fulfillment services.

• Items fulfilled by Walmart Fulfillment Services (WFS) see 50% higher conversion and 15% lower costs, with ads further multiplying GMV growth.

• Sellers are heavily adopting both WFS and advertising, with education efforts helping them optimize spend across ads, influencers, and affiliates.

• WFS leverages Walmart’s logistics to offer sellers fast, cost-effective fulfillment, including cross-border and D2C capabilities.

• Marketplace, WFS, and ads create a synergistic flywheel, driving growth and reinvestment by sellers.