US: Walmart increases market share during economic difficulties
The fact that American median family income has declined greatly contributes to Wal-Mart’s success. One extraordinary reflection of declining fortunes for the typical American: in the late 1990s, during an economic boom that boosted median income, total Wal-Mart grocery sales accounted for just 4%, on average, of a family grocery budget, compared to one quarter today.
In the next five years, Wal-Mart’s US revenue growth will likely remain about 5%, while its international growth should easily top 10% annually. In 2012 international sales accounted for 28% of total revenues, up from 18% in 2002. The international potential remains enormous.
Another massive market is e-commerce. In that arena, Wal-Mart holds a significant edge over competitors; Each store is an effective distribution center. With about 4,000 US stores and more than 6,000 worldwide, the company looks extremely well positioned as an internet retailer. Currently global e-commerce represents some 2% of Wal-Mart sales, and represents enormous potential for growth.
Source: forbes.com
