Walmart

Founded in 1962 when Sam Walton opened the first Walmart store in Rogers, Arkansas, Walmart Inc. grew into a global retail and wholesale operator headquartered in Bentonville, Arkansas.  Its purpose is “saving people money so they can live better,” which shapes pricing, assortment, and day-to-day operations across markets.

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Walmart runs an omnichannel model that blends physical stores, membership clubs, and eCommerce sites and apps. Its operations are reported through three main segments: Walmart U.S., Walmart International, and Sam’s Club U.S.  Across formats, it spans supercenters, discount stores, neighborhood markets, and Sam’s Club warehouses, with pickup and delivery integrated into many markets.

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At scale, Walmart serves about 270 million customers and members each week through 10,800+ stores and clubs plus multiple eCommerce websites in 19 countries.  In fiscal 2025, Walmart reported $681.0 billion in total revenue and employed about 2.1 million associates worldwide.

Walmart runs a scale-driven, high-volume retail model built on everyday low prices, tight cost control, and a logistics network that keeps shelves stocked while supporting fast pickup and delivery. Its operations are reported through Walmart U.S., Walmart International, and Sam’s Club U.S.

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Core activities
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1. Store-led retail at national scale
   The store base remains the operating core. As of January 31, 2025, Walmart reported 4,605 Walmart U.S. stores and 600 Sam’s Club locations, supported by a broad distribution footprint.
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2. Omnichannel fulfillment and convenience
   Stores double as local fulfillment nodes. In Q3 FY26, Walmart U.S. eCommerce grew 28%, and about 35% of store-fulfilled orders were delivered in under three hours, with expedited channels up nearly 70%.
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3. Marketplace and services layered on top of retail
   Walmart is expanding higher-margin revenue streams tied to its traffic and fulfillment network, including marketplace and fulfillment services and financial services, alongside retail.
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4. Advertising as a profit lever
   Walmart Connect monetizes shopper attention online and in stores through retail media. In Q3 FY26, Walmart’s global advertising business grew 53% (including VIZIO), and Walmart Connect in the U.S. rose 33%.
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5. Membership economics
   Membership spans Sam’s Club and Walmart+ in the U.S. In Q3 FY26, membership and other income rose 9.0%, including 16.7% growth in membership income.
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6. International portfolio with local leaders
   Walmart operates across the U.S., Canada, Mexico and Central America, China, India, and parts of Africa and South America. In Q3 FY26, Walmart International net sales were $33.5B, with eCommerce up 26%, led by marketplace and store-fulfilled pickup and delivery.
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Market position
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• Physical proximity plus digital scale lets Walmart compete with Amazon on speed and convenience, anchored by grocery frequency and store density.
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• Profit pools beyond retail (advertising, marketplace services, membership) improve the business mix while keeping price leadership central.
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• A broad value proposition positions Walmart against Target in mass retail and against Costco through Sam’s Club’s membership warehouse model.

China is one of Walmart’s strongest international growth markets, driven by a two-format strategy: Walmart hypermarkets for mass grocery and Sam’s Club for membership-led, premium bulk shopping. Walmart has operated in China since 1996 and serves customers through nearly 400 stores and clubs plus multiple e-commerce platforms.  Sam’s Club expanded to 62 locations by December 2025, and online orders represent a large share of sales, supported by fast local delivery and WeChat-based ordering flows.

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Key operating themes include:
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1. On-demand retail at scale: Walmart integrated China stores with Meituan’s delivery platform to strengthen rapid fulfillment.
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2. Partner reset: Walmart sold its JD.com equity stake in August 2024 while keeping a commercial relationship.
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3. Competitive pressure: Alibaba’s Freshippo and JD are pushing harder into price-led retail and instant delivery, raising intensity in food and general merchandise.

Walmart’s growth agenda centers on three levers: faster omnichannel convenience, a richer profit mix beyond retail margin, and automation and AI that lift productivity at scale. In Q3 FY26 (ended October 31, 2025), Walmart reported $179.5B in revenue, 27% global eCommerce growth, 53% global advertising growth (including VIZIO), and 16.7% growth in membership income. It raised FY26 guidance to 4.8% to 5.1% net sales growth and 4.8% to 5.5% adjusted operating income growth (constant currency).

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Key growth drivers
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1. Speed and last-mile density
   Walmart U.S. eCommerce grew 28% in Q3 FY26, with expedited delivery channels up nearly 70% and a growing share of store-fulfilled orders delivered in under three hours.
   Drone delivery is scaling with Wing to 150 additional stores over the next year and 270+ locations by 2027.
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2. Higher-margin revenue streams
   Advertising and data-led monetization are expanding, supported by the VIZIO acquisition and SmartCast footprint.
   Marketplace and seller services are being reinforced through faster seller payments with JPMorgan and fulfillment offerings like WFS.
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3. Automation and AI at enterprise scale
   Walmart reports more than 40% of new software code as AI-generated or AI-assisted, and more than 60% of freight moving through automated distribution centers.
   The Symbotic agreement targets automated pickup and delivery capability across hundreds of locations.
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4. International compounding
   Walmart International net sales rose 10.8% in Q3 FY26, led by Flipkart, China, and Walmex, with eCommerce up 26%.
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Challenges ahead
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• Regulatory and compliance friction in fast delivery and labor practices, highlighted by India’s directive that pushed quick-commerce players to drop “10-minute delivery” claims.
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• Earnings volatility in strategic assets, including a Q3 FY26 operating income impact tied to PhonePe share-based compensation ahead of a potential IPO.
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• Sustainability execution as Walmart targets zero emissions by 2040 and 100% renewable energy by 2035, while pushing suppliers through Project Gigaton.