A Milestone For A Traditional Retailer
Walmart has become the first traditional retailer to reach a $1tn (£730bn) market valuation, placing the company in a small group that has been dominated by technology firms.
The milestone reflects the growth of the US retailer’s e-commerce business and its ability to attract price-conscious shoppers. Wall Street has also responded positively to its investments in artificial intelligence. Walmart now joins companies such as Nvidia and Alphabet in the group of firms valued above $1tn.
The company’s share price, which has climbed in recent months, rose by more than 3% on Tuesday.
Sales Momentum And Consumer Shifts
Walmart is the largest brick-and-mortar retailer in the US and is known for its low prices. It has benefited from higher earners shifting to lower-priced items as the jobs market cools and inflation continues. Its fast home delivery service has also drawn shoppers from households across different income levels.
In its most recent earnings update in November, the company reported strong sales across key categories, including grocery and clothing. “Walmart is better insulated than just about anybody given the value proposition we have,” chief financial officer John David Rainey said at the time.
Walmart executives have said the impact of tariffs imposed by US President Donald Trump has been more limited than first expected. While the tariffs have raised prices for products such as electronics and toys, the company’s scale has allowed it to absorb the import taxes better than some competitors.
E-Commerce Growth And Competition With Amazon
Walmart’s online business has helped it position itself as a competitor to Amazon. In the three months to 31 October, US e-commerce sales at Walmart rose 28%, driven by online orders and advertising.
Amazon’s market value, however, remains far higher. It currently stands at about $2.6tn, more than double Walmart’s valuation.
AI Strategy And Leadership Changes
Investors on Wall Street have backed Walmart’s use of AI, which has helped lift the company’s valuation to new highs. The retailer reached the $1tn mark during chief executive John Furner’s first week in the role. Furner has been a vocal supporter of the company’s AI initiatives.
In October, Walmart announced a partnership with OpenAI. The company said the deal “allows customers and Sam’s Club members to plan meals, restock essentials, or discover new products simply by chatting.”
Walmart also moved its stock from the New York Stock Exchange to the Nasdaq late last year, a step that reinforced its effort to be seen as a digital-focused company.
How Walmart Fits Into The $1tn Club
Walmart is the first traditional retailer to join the $1tn market capitalisation group. The club remains dominated by technology companies, although investment firm Berkshire Hathaway reached the level in 2024.
Drug-maker Eli Lilly also passed the $1tn mark late last year before later falling back below the threshold.
Featured image credits: Flickr
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