In the third quarter of 2018, ecommerce sales dipped to 50% as the company had started to absorb the effects of the Jet.com acquisition in the middle of the quarter. Sales sharply fell to 23% in the fourth quarter of 2018 due to the impacts from the Jet.com acquisition as well as other operational issues that negatively affected growth.
Sales picked up in the first quarter of 2019 to 33%, driven
by strength in online grocery. In the second quarter, Walmart rolled out new
initiatives to improve customer experience. This included bringing new features
to shopping categories and adding new brands. The company saw a steady rise in
sales growth during the first three quarters of 2019, with the fourth quarter
remaining flat versus the third.
In the first quarter of 2020, ecommerce sales dropped to 37%
from 43% in the fourth quarter of 2019, reflecting impacts from SNAP funding. Sales
in the second quarter of 2020 remained flat sequentially at 37%, despite strength
in online grocery.
Walmart is focused on increasing the number of monthly active users, lowering costs and improving margins. The company is investing significantly in this space and believes there is opportunity for further expansion in the ecommerce marketplace.