Dive Brief:
- Walmart is emphasizing the power of digitally driven convenience and fast last-mile turnarounds as the company seeks to build up its now profitable e-commerce business, according to executives on a Q1 2026 earnings call Thursday.
- The number of deliveries made in less than three hours was up 91% year over year for Walmart U.S., according to President and CEO Doug McMillon. Walmart expects to offer three hour or less delivery options to 95% of the U.S. population in the near future.
- While e-commerce is a priority, Walmart isn’t ignoring brick-and-mortar. “Importantly, we want to be very flexible for our customers,” John Furner, president and CEO of Walmart U.S., said during the call. “If customers choose to shop in-store, we want to have a great store experience.”
Dive Insight:
Walmart and Sam’s Club aim to elevate their value proposition through the power of fast, convenient experiences as executives expect tariffs to push prices higher.
“We really see that convenience is something that resonates for everybody,” Chris Nicholas, president and CEO of Sam’s Club, said during the call. “And in fact, what we give them back is the power of time. So if we make things easier for people, they have more time, and that's incredibly valuable to people.”
Sam’s Club’s approach to convenience merges digital and physical shopping.
Over half of Sam’s Club members use digital options, including shopping online or using in-store digital tools, according to John David Rainey, EVP and CFO of Walmart. Use of scan-and-go technology, which lets customers select and pay for items as they shop to skip the checkout line, is up 6% year over year.
The company didn’t provide an update on the exact share of Sam’s Club customers who use scan-and-go, but the company reported in March 2024 that one-third of its members use the technology regularly.
Total revenue grew 2.5% year over year to $165.6 billion in first quarter 2026, while Walmart U.S. same-store sales rose 4.5%, according to a company earnings report. Walmart U.S. e-commerce sales were up 21% year over year, which Walmart attributed to its store-based pickup and delivery options, as well as the convenience of expedited delivery options.
Sam’s Club same-store sales rose 6.7% year over year, while e-commerce sales were up 27%.
While first quarter results were positive, tariffs loom over Walmart’s future, and McMillon warned that higher prices are coming. Convenience will have a role to play in the retailer’s strategy for mitigating the increases.
“We're focused on value in managing our relative price position while also saving customers time with our e-commerce options,” Rainey said.
Walmart U.S. is also “very pleased” with its ongoing remodel program, according to Furner. The effort, which includes widening aisles and improving order pickup and delivery capabilities, lead to higher net promoter scores in the revamped stores.
Focusing on convenience could pan out well for Walmart, as well as any retailer willing to invest in making shopping easier for customers, according to Greg Carlucci, senior director analyst at Gartner. He cited a 2024 Gartner survey in which consumers across all generations chose convenience as the top factor influencing their feelings of shopping and buying success.
“Keeping the focus on the consumer and how you're servicing them, and making sure you're not losing sight of that, is going to be critical this year and years moving forward to retain customers and not just focus on acquisition,” Carlucci said. “So I think any retailer that's focused on improving trust, improving convenience and improving quality will find it beneficial for them.”
