Walmart's growing share of high-income shoppers helped its e-commerce business turn into a powerhouse

Core Insights - Walmart's e-commerce operations achieved profitability in 2025, surpassing breakeven levels, with a positive outlook for future growth [1] - The company reported a 4.7% increase in overall sales to $713.2 billion, with e-commerce sales rising nearly 25% to over $150 billion [2] - Walmart's physical presence, with 5,200 locations, enhances its ability to deliver customer experiences, particularly in grocery and everyday essentials [4] E-commerce Growth - High-income households, particularly those earning over $100,000, have significantly contributed to Walmart's share gains in e-commerce [2] - The expansion of product categories, including fashion, has attracted new shoppers, with fashion leading sales growth in general merchandise [5][6] - Walmart's in-house shopping assistant, Sparky, has resulted in 35% larger transaction totals among app users [7] Competitive Landscape - Despite Walmart's growth, Amazon remains the largest company by revenue, with $716.9 billion, but Walmart's e-commerce progress poses a competitive threat [3][8] - Walmart's strategy to leverage its physical stores for e-commerce fulfillment gives it an edge in rapid delivery services compared to Amazon [4]