Wal-Mart showed in its second quarter earnings that its U.S. division has had declining traffic for seven quarters in a row, lacking sales growth for six. However, the company is investing in its small-scale stores and e-commerce. Same-store sales had a 5.6 per cent increase and a 4.1 per cent traffic growth at Wal-Mart’s Neighbourhood Markets. These smaller stores are located in urban areas and take up one third of the space of the supercentre stores.
“We’re encouraged by the performance of our small-format stores and e-commerce, areas where we’re investing significantly this year. But we wanted to see stronger comps overall in Walmart U.S.,” Wal-Mart chief executive Doug McMillon said in an official statement last week.
Wal-Mart has plans to open 180 to 200 more Neighbourhood Market stores within this year to add to the already existing 22 from the last quarter.
