Walmart‘s Global Growth Strategy in 2024: What Is It and What‘s Next?
With over $559 billion in 2022 revenue, Walmart continues to set its sights on domestic and international retail dominance. While stalwart performance in the US has driven profits, Walmart‘s international segment represents a significant growth avenue moving forward.
Walmart‘s Massive International Scale in 2024
After decades of expansion, Walmart now operates over 6,300 stores across 24 countries outside the US. These international locations account for 23.7% of total FY2022 sales, serving over 100 million weekly customers globally.
Some details on Walmart‘s current international presence across major regions:
| Region | # of Stores | Countries/Markets |
|---|---|---|
| North America | 4,769 | Mexico, Canada |
| Central America | 956 | Costa Rica, Guatemala, etc |
| South America | 730 | Chile, Brazil, Argentina |
| China | ~400 | Yihaodian ecommerce, Sam‘s Club |
| United Kingdom | ~625 | Asda Stores |
| India | Flipkart ecommerce acquisition | Flipkart, Best Price |
| Africa | 463 | South Africa, Kenya, Ghana |
With leading market share through physical stores and ecommerce in multiple regions abroad, Walmart exhibits true global scale. However, international sales growth has lagged domestic performance recently. Evaluating overseas results provides insight into Walmart‘s international strategy.
Assessing Profit Potential and Performance
Historically, consistent profit delivery has proved difficult internationally:
- Over $8 billion in net losses outside the US between FY2014-FY2021
- Trailing 3 years showed improvement but still average annual losses around $500 million
- UK and Canadian units only consistent bright spots
Clearly, international expansion comes with inherent challenges—adapting Walmart‘s model requires significant upfront investment across markets. However, after years of tweaking operations, international profitability appears within reach.
Strategic Priorities for Global Growth in 2024
Based on recent earnings reports, Walmart seems focused on four key strategic pillars to drive better international performance:
- Localization: Continuing to adjust merchandise, pricing, and experiences to fit local markets
- Ecommerce investment: Acquiring and building delivery/pickup capabilities abroad
- Leveraging technology: Implementing supply chain automation, AI in stores, blockchain
- Portfolio optimization: Assessing countries and banners to shift focus and resources
These four priority areas align with Walmart‘s strengths in stores, online, tech, and portfolio management. Overall momentum remains positive for better profit realization.
Final Thoughts
Walmart seemingly has all the ingredients—leadership, resources, capabilities—to expand internationally with discipline. However, adapting their model at such massive scale remains an immense challenge with unpredictable factors.
In 2024 and beyond, Walmart should double down on hyper-localization, seek targeted acquisitions in key categories like grocery delivery, and leverage next-gen technology to enhance operations in each market.
If they continue taking a customized, long-term approach market-by-market, steady international growth should follow. But shareholders will want to see definititive progress translating global scale into profitability moving forward.
