Walmart and Target, two of Amazon's largest retail competitors both reported increases in their Q3 revenue. Both companies prioritized their e-commerce segments in order to compensate for pandemic-driven drops in foot traffic and sales in stores. Retail sales rose overall in the U.S. in October to $553.3B, up 0.3% from the previous month, with online sales increasing by 3.1% from the previous month.
- Walmart reported revenue of $134B for Q3 2020, up 5% YoY. The company’s profit stood at $5.1B, up 45% YoY. The company’s share price increased by 2% on the earnings announcement, and it has increased by 30% since the beginning of this year.
- Walmart said that the number of trips made by shoppers decreased by 12% but the volume of shopping during their visits increased by 24%.
- Walmart’s U.S. e-commerce sales increased by 79%, and Sam’s Club’s e-commerce sales increased by 41%.
- The company introduced Walmart Plus, a membership plan that competes with Amazon’s Prime membership for retail purchases.
- Walmart also announced pilot testing of grocery delivery through self-driving cars, which would begin next year. It started its pilot program for delivery through drones in North Carolina.
- Target reported revenue of $22.6B for Q3 2020, up 21% YoY. The company's profit stood at $1B, up 41% YoY.
- The company's online sales grew by 155%, contributing to around 10% of the overall increase. Same day delivery services increased by 217%.
- Delivery service provider Shipt's revenue increased by 280%. Target bought Shipt for $550M in 2017.
- Target reported that the number of transactions online and in its stores increased by 4.5% YoY, and the average transaction size increased by 15.6% YoY.
- Target's share price has increased by 5% on the earnings announcement and has increased by 40% since the beginning of this year.
Versions of these stories first appeared in Inside E-commerce. You can read the full issue here.