BNR – Walmart still plans to increase the amount of gross merchandise volume it sells in overseas markets to $200 billion in five years.
Gross merchandise volume (GMV) measures the entire value of all items sold through the platform or marketplace.
In the case of Walmart, this includes the Cashi digital payments app platform in Mexico and the Flipkart marketplace in India.
Ambitious Target Set by Walmart
“It is a pretty ambitious target,” Judith McKenna, Walmart International’s CEO said. “The markets that we have today have plans to be able to get there.”
In Bentonville, the analysts’ gathering coincided with Walmart’s annual shareholders meeting.
Walmart International produced around $120 billion in GMV five years ago. However, as of January 31, 2023, the figure fell to $100 billion. This occurred after the store divested its operations in Brazil, Argentina, Japan, and the United Kingdom.
Omnichannel Strategy and Technological Diversity
McKenna initially stated in April that Walmart’s overseas GMV will be doubled. Walmart’s business strategy has altered in recent years, with a stronger emphasis on omnichannel.
McKenna believes Walmart’s massive size and technological diversity will allow them to scale this plan more swiftly. She anticipates Walmart’s progress to be driven by the global implementation of the omnichannel strategy.
In addition to selling common goods through physical stores in Mexico, Walmart provides banking services through its Cashi app. Furthermore, it provides communication services through BAIT and has just begun to provide healthcare services in the country.
Walmart’s omnichannel strategy has been a windfall for the store as recession worries drive more Americans to look for grocery prices. According to the firm, dry grocery inflation is persistent.
With more of a family’s income going toward food, Walmart and other merchants are reconsidering how they price specific goods. More discounts on food, clothing, and other non-essential items may be implemented by the corporation.