Web site redesign, online pickup site expansion planned

BENTONVILLE, Ark. — Walmart expects that its U.S. online sales will grow 40% in its next fiscal year, which starts on February 1.

That forecast came ahead of the giant retailer’s annual meeting for the investment community on Tuesday, during which the company announced plans to redesign its website, double its number of online grocery pickup locations (which currently number 1,000) by the end of next year, and slow the roll out of additional brick-and-mortar stores. Walmart also plans to bring Jet.com’s smart-cart system — which allows consumers to save more if they have multiple purchases shipped together in the same box, opt out of free returns, or pay with a debit card — to Walmart.com.

Investors applauded the plans, which will position Walmart to more aggressively challenge Amazon.com in the e-commerce space. Shares of Walmart stock rose more than 4.5% in the immediate wake of the announcements. Another factor that helped drive that gain was Walmart’s announcement that it’s board had authorized the buyback of up to $20 billion in stock over the next two years.

Walmart president and CEO Doug McMillon said he was confident in his company’s ability to win the fight for consumers in an increasingly omnichannel world where both price and convenience matter.

“We have good momentum in the business, we’re executing our strategy and moving with speed to win with the customer, who is more connected than ever and embracing tools that will save them both time and money,” McMillon said in a statement. “We’re combining the accessibility of our stores with eCommerce to provide new and exciting ways for customers to shop. I’m proud of the team we have in place, the work we have underway and how we are positioned for success in the future.”

Walmart said that it planned capital expenditures of about $11 billion for the current year (fiscal year 2018) and fiscal 2019. About 280 new stores (including new, expanded, relocated units) are planned globally in each of those years, with Walmart International planning to add about 255 units. In the United States, Walmart said it intends to prioritize store remodels and digital experiences over new outlets.