Walmart investors push advertising and healthcare services amid pandemic boom Walmart investors push advertising and healthcare services amid pandemic boom
Walmart investors want to push for more advertising and healthcare services after receiving a huge boost in revenue amidst the pandemic. Walmart investors push advertising and healthcare services amid pandemic boom

Feb 17 (Reuters) – Walmart Inc’s investors and analysts are likely to look past the retail giant’s slowest same-store sales growth since the start of the coronavirus crisis when it reports quarterly results on Thursday and instead focuses on the company’s ambitions to diversify beyond retail.

Walmart’s online sales nearly doubled and comparable sales growth touched high single digits each quarter in 2020 as Americans bought groceries and other essentials during the coronavirus pandemic. During that time, the retailer also heavily invested in advertising and health services.

“They are thinking broader picture about their customers, so it’s not so much each transaction, but how do we think more holistically,” said Chad Oviatt, director of investment management at Huntington Private Bank.

Walmart is starting to merge other parts of its business with its main retail and e-commerce business, he added.

Bentonville, Arkansas-based Walmart has also bolstered its presence in healthcare with its own insurance business and an expansion of its healthcare centers in the United States that provide low-priced medical services such as dental care and counseling for customers.

“We are encouraged to see Walmart expand its vision beyond retail and e-commerce, with a focus on building a powerful ecosystem, including advertising, merchant services, health services, and digital payments,” Telsey Advisory analyst Joseph Feldman said in a note.

“These new elements of the ecosystem are more profitable than traditional retail and collectively should help strengthen its relationship with customers and generate profitable market share gains,” he said.

Rahma Ali

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