Big-box retailer Walmart reported a 6% increase in fourth-quarter revenue, driven by strong sales over the 2023 holiday season and double-digit growth in its global e-commerce sales. Additionally, the company announced that it is purchasing Vizio, a smart TV maker, for $2.3 billion in an effort to increase growth of its advertising business.
John David Rainey, Walmart’s Chief Financial Officer, shared that consumers are shopping more frequently but buying less in each trip, particularly when it comes to expensive items such as TVs, computers and other electronics. He also said that deflation—which occurs when prices decline—is less likely to occur than previously expected.
“The possibility overall [of deflation] still remains, but prices are more stable than where they were three months ago,” he said.
With the purchase of Vizio, Walmart will be able to show ads using the TV’s operating system and glean better data on how customers interact with the ad and if it leads to a Walmart purchase. The company expects to grow operating income more than 8% and sales more than 5% on an annual basis, Rainey said.
