The company managed to retain its place as the largest retailer in the U.S., with Amazon in second place.
Walmart sums up the fiscal year 2020, which ended January 29, and reports that its total revenue grew 6.7%, reaching $559 billion. The retailer's closest competitor in the U.S. market, which came in second place in the ranking of major retail players, Amazon reported revenues of $386 billion for the last fiscal year.
Meanwhile, earnings figures for 2020 show a 9.2 percent decline, from $14.88 billion in 2019 to $13.51 billion. In the fourth quarter alone, Walmart reported a loss of $2.09 billion. This figure includes losses from Walmart sales in Japan, the United Kingdom, and Argentina.
One reason for the increase in revenue was that the average check increased significantly, with the average cost per customer transaction up 22% in the fourth quarter alone. Shoppers, staying quarantined, tend to stock up on necessities and groceries and purchase more with each purchase. And one of the fastest-growing segments has been online sales. Walmart's online sales are up 79% year over year, and in the fourth quarter alone, that growth was about 69%. Record figures were also recorded during segments of pickup and delivery.
In response to the retail crisis caused by the pandemic, the company is actively working to improve its shopping experience. Walmart is investing heavily in digital technology to enhance the customer experience. It is also continually improving its logistics system to ensure that it always has the right stock products. The company plans to invest nearly $14 billion in this area through 2021 to improve supply chain efficiency and customer experience.
Photo credit: depositphotos.com.