Walmart's Earning Strategy Explored: Uncovering How Walmart Generates Revenue
Walmart's 2025 Business Strategy: A Focus on Employee, Supply Chain, and Omnichannel Growth
Walmart, the American multinational retail corporation founded by Sam Walton in 1950, has revealed its business strategy for 2025. The strategy aims to leverage internal strengths to drive growth through employee-focused initiatives, supply chain innovation, and omnichannel expansion, combined with strategic investments internationally to diversify revenues.
Employee Engagement and Retention
Walmart has expanded its employee discount program from 10% to 95% of items, generating $1.6 billion in annual sales from 1.6 million U.S. employees. This move is expected to boost retention and turn employees into customers, strengthening the company's workforce.
Supply Chain and Logistics Optimization
Walmart is implementing AI-driven supply chain upgrades, resulting in a 30% reduction in fulfillment costs. The company's network of over 5,000 U.S. stores serves as hybrid fulfillment centers, enabling one-hour delivery and supporting a 500 million-item e-commerce platform that competes strongly against Amazon. Pactum AI negotiations further reduce costs compared to Amazon’s logistics spending of $4 billion.
E-commerce and Omnichannel Growth
Walmart maintains a strong omnichannel presence integrating online and physical stores. E-commerce sales continue to grow, contributing 3.5% sales growth in Q2 2025, with a projected e-commerce sales growth of 12-18% in 2025.
Global Expansion and Digital Investments
Walmart is investing heavily in international markets, particularly India via Flipkart and China through Sam’s Club and imports. These markets contribute significantly to Walmart’s global e-commerce growth (22% in FY26 Q1) and help hedge risks from tariffs and margin pressures in other regions.
Business Diversification
Walmart’s revenue streams include traditional retail, e-commerce, membership programs (e.g., Sam’s Club), and growing digital advertising businesses, which increased 46%. This diversification helps improve returns on assets (8.3%) and overall financial health.
Historically, Walmart's business model has focused on cost leadership, vast scale, and supply chain efficiency, enabling competitive pricing. Its corporate structure combines roughly 5,000 U.S. stores acting as fulfillment and sales centers with a globally distributed network incorporating subsidiaries like Flipkart (India) and Sam’s Club in China.
Walmart's revenue avenues include in-store retail sales across grocery, general merchandise, and memberships. E-commerce sales are driven by a large product assortment and fast delivery options. Advertising revenue comes from Walmart’s growing digital ad platform, and membership income is generated from subsidiaries like Sam’s Club. International market sales and e-commerce growth, especially from Flipkart and China, are also significant revenue streams. These are supplemented by strategic partnerships and technology investments enhancing service capabilities and cost structure.
Overall, Walmart’s 2025 strategy combines deep employee engagement, cutting-edge supply chain automation, omnichannel retailing, and international expansion to sustain and grow its market leadership while effectively competing with Amazon and other global retailers.
[1] Walmart's 2025 Strategy: A Focus on Employee, Supply Chain, and Omnichannel Growth
[2] Walmart's 2025 Strategy: A Deep Dive
[3] Walmart's 2025 Strategy: A New Era of Growth
[4] Walmart's 2025 Strategy: A Focus on International Markets
[5] Walmart's 2025 Strategy: A Focus on Digital Advertising
- Walmart's 2025 strategy encompasses a strategic focus on employee engagement, supply chain innovation, and omnichannel growth, as well as significant investments in technology and international markets, uniquely positioning the retail giant to diversify its revenue streams and better compete in the finance, retail, and technology industries.
- By leveraging AI-driven supply chain upgrades, Walmart aims to maintain its cost leadership in the retail industry while ensuring competitive pricing, reducing fulfillment costs by 30%, and increasing e-commerce sales, particularly through its integration of online and physical stores in the technology sector.
