Walmart (WMT) Goldman Sachs Global Consumer and Retail Conference summary

Price and inflation management

• Maintains strong price gaps through supplier collaboration and rollbacks, aiming for sustained value in the back half of the year.

• Inflation averaged 1.4% in H1, with food at 1% and general merchandise at 2%; Q3 saw inflation drop below 1% due to price investments, with similar trends expected for the remainder of the year.

Health and wellness performance

• Health and wellness, mainly pharmaceuticals, represents 10% of U.S. business and faces headwinds from Maximum Fair Pricing (MFP) regulations.

• Despite MFP, script growth and double-digit profitability improvements were achieved in Q2.

• Pharmacy delivery customers spend up to 6x more and show a 10x repeat rate year-over-year.

• MFP headwinds will persist into next year as more drugs are impacted, but core business remains robust.

E-commerce and digital innovation

• E-commerce grew 24% last quarter, marking ten consecutive quarters of 20%+ growth, driven by assortment, price, and experience.

• Investments in automation and AI, including the Sparky agent, enhance efficiency and customer experience.

• 70% of deliveries are same-day or faster, with express delivery in 30 minutes or less doubling year-over-year.

• Membership, Marketplace, and advertising all posted double-digit comps, reshaping the e-commerce P&L.