Walmart’s latest earnings showed inflation is still making an impact but not as big as analysts expected.
75%: Walmart’s
food market share gains from customers earning over $100,000, according to CNBC. Inflation has impacted consumer behavior not only in grocery, which saw double-digit comparable sales growth, but also in general merchandise, which saw sales drop in apparel, electronics, and home products.
$2.53 billion: Our forecast for
Walmart’s ad revenues in 2022, a
58.0% growth YoY.
Global ad business grew 30% in Q2. The retailer recently added four API partners in its Walmart Connect retail media network:
Quartile (ecommerce cross-channel ad platform),
Sellozo (ad optimization platform), and ecommerce ad platforms
Perpetua and
Intentwise.
30%: The increase in
Colgate-Palmolive’s new customers for its line of dorm necessities after it
used Walmart’s retail media network. The campaign resulted in an
8% increase in sales and an
$11.16 return on ad spend.
Why we care: After a rocky start, Walmart is outpacing expectations. The retailer’s reputation as a low-cost provider is bringing in new customers—and sales—during this inflationary period. Its retail media network is another bright spot: We forecast
US digital retail media ad spending will reach
$40.81 billion this year, more than triple its pre-pandemic total.