ReutersWalmart International’s gross profit rate slipped in the June quarter, weighed down by rising investments in India’s fast-growing quick commerce market through Flipkart and Myntra.
“In International, gross profit rate declined with continued pressure from channel and format mix, as well as strategic investments in price across markets and our quick commerce capabilities in India,” said John David Rainey, chief financial officer and executive vice president, Walmart, on the company’s April–June earnings call.
Kathryn McLay, president and CEO of Walmart International, said the retailer is doubling down on India’s 15-minute and 30-minute delivery segment. “We now have 300 minute FCs (fulfilment centres), which enables us to get to the customer in less than 15 minutes. And we have 60 MFCs for Myntra, which enables them to be able to get to the customer in under 30 minutes,” she said.
McLay noted Walmart is positioning itself to grow this channel efficiently by moving third-party inventory closer to consumers. Earlier in May, she pegged quick commerce at 20% of India’s ecommerce market, growing at 50% annually.
Walmart’s India bet comes amid stiff competition from Blinkit, Swiggy Instamart and Zepto. To fund this push, Flipkart’s Indian marketplace entity recently received Rs 2,225 crore (about $260 million) from its Singapore-based parent. The infusion will accelerate rollout of Flipkart Minutes, its 15-minute delivery vertical, which aims to set up 800 dark stores by end-2025. The company has already crossed the halfway mark, as ET reported in May citing Flipkart Minutes vice president Kabeer Biswas.
For the April–June quarter, Walmart International reported net sales of $31.2 billion, up 5.5% year-on-year, led by Flipkart, China and Mexico.
Advertising revenue rose 15%, with Flipkart again driving growth.
“In International, gross profit rate declined with continued pressure from channel and format mix, as well as strategic investments in price across markets and our quick commerce capabilities in India,” said John David Rainey, chief financial officer and executive vice president, Walmart, on the company’s April–June earnings call.
Kathryn McLay, president and CEO of Walmart International, said the retailer is doubling down on India’s 15-minute and 30-minute delivery segment. “We now have 300 minute FCs (fulfilment centres), which enables us to get to the customer in less than 15 minutes. And we have 60 MFCs for Myntra, which enables them to be able to get to the customer in under 30 minutes,” she said.
McLay noted Walmart is positioning itself to grow this channel efficiently by moving third-party inventory closer to consumers. Earlier in May, she pegged quick commerce at 20% of India’s ecommerce market, growing at 50% annually.
Walmart’s India bet comes amid stiff competition from Blinkit, Swiggy Instamart and Zepto. To fund this push, Flipkart’s Indian marketplace entity recently received Rs 2,225 crore (about $260 million) from its Singapore-based parent. The infusion will accelerate rollout of Flipkart Minutes, its 15-minute delivery vertical, which aims to set up 800 dark stores by end-2025. The company has already crossed the halfway mark, as ET reported in May citing Flipkart Minutes vice president Kabeer Biswas.
For the April–June quarter, Walmart International reported net sales of $31.2 billion, up 5.5% year-on-year, led by Flipkart, China and Mexico.
Advertising revenue rose 15%, with Flipkart again driving growth.
