The retailer became one of nine U.S. companies with a market over $1 trillion, according to the report. Most of the other companies are tech groups.
The Wall Street Journal reported Tuesday that Walmart is the first traditional retailer to achieve this milestone.
The FT report attributed Walmart’s gains to the company’s development of an eCommerce business that is now capable of competing with Amazon, its expansion to nearly 11,000 stores worldwide, its partnership with OpenAI that allows shoppers to complete purchases on ChatGPT, and analysts’ expectations that its annual revenue will top $700 billion when it reports quarterly results later this month.
The WSJ also pointed to investor enthusiasm about Walmart’s online business growth and artificial intelligence (AI) investments, as well as shopper interest in low prices, fast delivery and broad selection. It added that the retailer added items that appeal to higher-income shoppers, developed the ability to offer same-day delivery to 95% of U.S. households, and automated enough warehouse tasks to keep its workforce at about the same size even as it grows its revenue.
CNBC reported Tuesday that Walmart has also expanded higher-margin businesses such as its third-party marketplace and its advertising offering.
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The FT report noted that Walmart reached the $1 trillion milestone during the week that John Furner became the company’s CEO. Furner plans to continue Walmart’s investments in automation and AI, according to the report.
It was reported Friday that Walmart’s appointment of Furner as its new CEO signaled that the retailer intends to expand its digital footprint. Furner was an early proponent of drones, he chats with AI during his commute to work, and he visits companies in Silicon Valley to better understand emerging technologies, Bloomberg reported Friday.
Walmart announced in November that Furner would become CEO on Sunday (Feb. 1), succeeding Doug McMillon, who would retire on Saturday (Jan. 31).
Bloomberg reported Tuesday (Feb. 3) that in his first companywide memo as CEO, Furner asked employees to share anything that slows them down or makes it harder for them to do their jobs and said that he wants to know what improvements are needed. Furner also said in the memo that AI is freeing up workers to spend more time with customers.
PYMNTS reported Jan. 15 that Walmart’s embrace of a new standard for agentic AI positioned the retailer as a collaborator, aligning with Google on agentic shopping standards.
