In a landscape defined by razor-thin margins, Walmart just changed the rules. Its U.S. e-commerce unit is now profitable—and not just barely. Supported by faster order densification, expanding higher-margin revenue streams like advertising and memberships, and smart capital investments in automation, Walmart is on track to see online profitability rival, and eventually surpass, in-store margins.
In this new CFRA Thematic Report, analyst Arun Sundaram explores:
- Walmart’s digital transformation and how e-commerce is set to drive 60% of total sales growth over the next five years.
- Why Amazon remains Walmart’s fiercest competitor—but also why most other retailers may not keep up.
- How Walmart’s Vizio acquisition unlocks massive advertising potential across connected TVs and online retail.
- Strategic advantages in logistics, data monetization, and fulfillment that create an uphill battle for smaller players.
The shift is clear: in a market where online grocery sales are growing at 5x the rate of in-store, the margin narrative is flipping.
See which companies are best positioned for retail’s digital profit revolution and which may be left behind.