Retail giant Walmart has announced its plans to double its Gross Merchandise Volume (GMV) on international markets within the next five years, with the target set at a staggering $200 billion. GMV, a crucial metric that measures the total value of products sold through Walmart’s platforms, currently encompasses various markets such as Cashi in Mexico and Flipkart in India.
Judith McKenna, the CEO of Walmart International, remains steadfast in her confidence that the ambitious goal is attainable, despite the global economic uncertainty. Walmart International has faced its share of challenges in recent years, with its GMV decreasing from $120 billion five years ago to $100 billion due to divestments of enterprises in certain countries.
Notably, Walmart has adopted an omni-channel approach as its core business model, integrating e-commerce, delivery services, advertising, and marketplaces. McKenna envisions further expansion through a global omni-channel implementation, marketplace expansion, and the development of a complementary business ecosystem.
In specific markets like Mexico, Walmart has already made significant strides in diversifying its services. Besides retail, the company provides financial services through Cashi, telecommunications services through BAIT, and, more recently, healthcare services. These innovative ventures aim to strengthen Walmart’s presence and appeal to a broader customer base.
Backed by the success of their omnichannel initiatives in the United States, which have resonated with consumers seeking deals on groceries amid recession fears and persistent inflation, Walmart is confident that a similar approach will pay dividends in international markets. By offering lower prices on back-to-school items and providing more quantity and affordable options, the retail giant intends to attract a wider range of consumers.