Walmart (WMT) investor relations material

Marketplace growth and key drivers

• Marketplace achieved over 50% growth in Q1 and Q2, driven by years of investment in assortment, pricing tools, speed, and discoverability.

• Fulfillment Services and next-gen fulfillment centers have led to a 50% higher conversion rate for items stored in these facilities.

• Enhanced assortment, including new brands and categories, is attracting new customers and higher-income households.

• International expansion is underway, with the same playbook being applied in Canada, Mexico, and Chile, and cross-border shopping enabled.

• Integration of stores as fulfillment nodes enables rapid delivery, with 95% of Americans within three hours of a store.

Competitive differentiation and ecosystem integration

• Marketplace focuses on serving customer wants and needs, offering unique brands and products not previously available.

• The combination of a vast store network and fulfillment infrastructure creates a competitive advantage that is difficult to replicate.

• Marketplace is predominantly general merchandise, with a high mix of fashion, home, electronics, and toys, complemented by shelf-stable grocery.

• Ads and organic search help new items overcome the cold start problem, boosting discoverability and sales.

• Stores and Marketplace are increasingly integrated, with inventory forward-deployed to stores for faster delivery and seamless customer experience.

Monetization, advertising, and fulfillment services

• Marketplace is a key engine for higher-margin revenue streams, including advertising and Fulfillment Services.

• Items in Fulfillment Services see 50% higher conversion and 15% lower costs, with sellers experiencing 1.5x sales at better margins.

• Combining Fulfillment Services with ads can result in up to 5x GMV growth for sellers.

• Sellers are educated on leveraging ads, influencers, and affiliates to maximize ROI and growth.

• Sellers can use Walmart Fulfillment Services to fulfill orders from multiple channels, including D2C and other marketplaces.