Walmart says Flipkart’s ‘limited operations’ negatively affected Q1 growth


PTI, May 20, 2020, 7:59 AM IST

New Delhi: Retail major Walmart on Tuesday said “limited operations” by its Indian e-commerce firm Flipkart amid coronavirus outbreak has “negatively affected growth” of its international business in the March 2020 quarter.

Walmart group’s overall net sales stood at USD 133.67 billion during the reported period, logging a growth of 8.7 percent.

Walmart International, which is present in nine markets including China, Japan, Mexico, the UK apart from India, saw sales growing by 3.4 percent to USD 29.76 billion in the January-March period, with e-commerce accounting for 9 percent sales.

“E-commerce contributed 9 percent of total segment net sales, led by growth in China, Canada, UK, and Mexico. Limited operations of the company’s Flipkart business in India for a portion of the quarter negatively affected growth,” said Walmart in a post-earnings statement.

India is presently under an unprecedented lockdown since March 25 to prevent the spread of the COVID-19 pandemic. The government imposed the lockdown, restricting commercial activities and vehicular movements, among other curbs.

While in the US market Walmart recorded a 74 percent growth in its e-commerce business.

“Store pickup and delivery, ship to home, ship from store and marketplace channels were strong throughout the quarter,” it said.

During the quarter, Walmart International’s gross profit increased 10 basis points on a reported basis, primarily due to the company’s Flipkart business.

However, this was “partially offset by an outsized change in mix towards lower margin categories and formats in response to COVID-19”, said Walmart.

During the quarter, Flipkart had also announced the partnership with ride-hailing platform Uber to deliver everyday essentials to customers.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Heavy rain leaves Vitla-Mangaluru road flooded

B’luru gets new Police Commissioner

Rain batters coastal Karnataka, red alert issued in Dakshina Kannada, Udupi

Child boarding incident: DGCA finds IndiGo staff prima facie violated regulations, issues showcause

In a first, High Court hears case through Whatsapp

Bodies floating on Ganga: NGT asks UP, Bihar govts to inform number of human corpses found in river

Kashmiri Pandits continue to protest against Rahul Bhat’s killing


Related Articles More

RBI may hike rates by 75 bps by August in view of persistent inflation: SBI Economists

McDonald’s to sell its Russian business, try to keep workers

Biological E. cuts price of its COVID-19 vaccine to Rs 250 per dose

Asian shares mixed as markets eye US interest rates, prices

Paytm to file for new license, says bullish about its roadmap for general insurance

MUST WATCH

NEWS BULLETIN 16-05-2022

Bajarangadal, called protest at Dattapeeta

Grand welcome for school students at Hiriyadka

Students parents protest at shankarnarayan governament school

Long term predictions | Jayateertha Acharya


Latest Additions

Solutions to world’s problems lie in traditional Indian knowledge: Education minister

Heavy rain leaves Vitla-Mangaluru road flooded

B’luru gets new Police Commissioner

Rain batters coastal Karnataka, red alert issued in Dakshina Kannada, Udupi

Salman Khan to present Kichcha Sudeepa’s ‘Vikrant Rona’ in North India

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.