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| Walmart shares fall 10% as online sales slow | |
| (about 1 hour later) | |
| Walmart shares suffered their biggest percentage fall for more than three decades on Tuesday after reporting disappointing online sales figures for the Christmas period. | |
| Online sales were 23% higher in the three months to December. | Online sales were 23% higher in the three months to December. |
| However, that was less than half the growth recorded in the previous quarter and lower than in the same period of 2016. | |
| Shares in the world's largest retailer fell just over 10% to $94.11. | |
| The retailer said its online revenues totalled $11.5bn last year, but it lost money on those sales. Chief executive Doug McMillon said e-commerce losses would be "about the same" for 2018. | |
| He told analysts the company was making progress in its efforts to compete with Amazon and other competitors. | |
| "We're confident in our strategy to transform the company," Mr McMillon said. "It's really about providing more convenience to customers." | |
| It plans to spend more on Walmart.com and cut back on marketing for its Jet.com site, which aimed at younger and better off shoppers. Walmart paid $3.3bn to buy Jet.com in 2016. | It plans to spend more on Walmart.com and cut back on marketing for its Jet.com site, which aimed at younger and better off shoppers. Walmart paid $3.3bn to buy Jet.com in 2016. |
| While sales at Walmart's US stores rose by a better than expected 2.6% in the fourth quarter, net profit sank 42% to $2.2bn (£1.6bn). | |
| Asda, Walmart's UK supermarket, reported a 0.5% rise in like-for-like sales - its third consecutive quarter of sales growth. | |
| Mr McMillon said he was encouraged by Asda's continued recovery, but said there was "more work to do". | Mr McMillon said he was encouraged by Asda's continued recovery, but said there was "more work to do". |
| Bryan Roberts, retail analyst at TCC Global, said the company "played a good game over Christmas", adding: "We've seen a marked improvement in service levels and sharper all-round availability." | Bryan Roberts, retail analyst at TCC Global, said the company "played a good game over Christmas", adding: "We've seen a marked improvement in service levels and sharper all-round availability." |
| Asda lost its place as the UK's second-biggest supermarket to Sainsbury's in late 2015 and the likes of German discounters Aldi and Lidl have also eaten into its market share. | Asda lost its place as the UK's second-biggest supermarket to Sainsbury's in late 2015 and the likes of German discounters Aldi and Lidl have also eaten into its market share. |
| Mr Roberts said the latest sales figures hinted at a return to form. | Mr Roberts said the latest sales figures hinted at a return to form. |
| "In its heyday, Asda really appealed to younger families. Its supermarkets were fun places to be," he said. | "In its heyday, Asda really appealed to younger families. Its supermarkets were fun places to be," he said. |
| "It's lost some of that spirit over the years, but its recent seasonal campaigns - such as at Christmas and Halloween - show it still has that capability in the locker. A focus on recapturing a year-round family appeal could catalyse its ongoing recovery." | "It's lost some of that spirit over the years, but its recent seasonal campaigns - such as at Christmas and Halloween - show it still has that capability in the locker. A focus on recapturing a year-round family appeal could catalyse its ongoing recovery." |