Walmart

Walmart: Flipkart’s Big Billion Days event boosts Walmart International’s sales in Q3

US retailer Walmart saw its international sales jump 13% in the third quarter, helped by Flipkart’s flagship festive sale, Big Billion Days.

Walmart said in its quarterly earnings report for the September quarter that international sales rose 13% to $26.8 billion in constant currency, driven primarily by double-digit growth in Flipkart and its Mexican company Walmex. In the same quarter last year, Walmart International saw its net sales fall nearly 25% to $22.3 billion.

Normally, the holiday sale is held in the fourth quarter, but this year’s Big Billion Days took place from September 23 to 30.

Walmart International’s president and CEO Judith McKenna said on the earnings call that the company was pleased with Flipkart’s performance this quarter and was able to attract new online shoppers, with more than a billion visits during the sale.

“The Big Billion Days fell in the third quarter this year, last year in the fourth quarter. That caused some differences in our results between Q3 and Q4,” said McKenna. “That’s an event designed to try to get new customers on board for Flipkart. And it seems to have succeeded again.”

The timing of Flipkart’s sale also helped reduce stock growth, the company said in its investor presentation.

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According to a report from market research firm Redseer, Flipkart Group, which includes fashion retailer Myntra and value commerce marketplace Shopsy, maintained its leading position in the first leg of the holiday sale with a market share of 62%.

ET previously reported that this year’s holiday sales were critical for etailers, as they resulted from relatively lackluster sales in the first half of the calendar year. Flipkart spent about $1.1 billion between February and September, filings with Walmart showed.

Flipkart also made a significant contribution to Walmart’s advertising business during the quarter, which grew about 40% during that period, the Bentonville-based company said in a statement. McKenna said in June that India was Walmart’s largest market in terms of ad revenue.

ET reported on October 28 that Flipkart Internet, which runs the online marketplace, saw its ad revenue increase by 50% to Rs 2,083 crore in FY22.

Walmart also said on Tuesday’s earnings call that PhonePe had hit 10 billion transactions in a month for the first time.

The US retail giant acquired Flipkart for $16 billion in 2018. In July 2021, the Indian retailer raised $3.6 billion in new funding from Walmart, SoftBank, GIC and others at a valuation of $37.6 billion. This was preceded by a $1.2 billion internal funding round by Walmart in 2020.

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