What's going on?

No matter what the pandemic�s had in store, Walmart�s stores have had something better: the retail chain reported better-than-expected quarterly earnings on Tuesday.

What does this mean?

The pandemic�s had a massive impact on the way Walmart�s customers shop: it�s not just that they�re more likely to stock up in bulk when they visit its stores, it�s that they�re now more likely to avoid them altogether in favor of the � checks notes � world wide web. And that showed in Walmart�s update: the company�s US ecommerce sales grew by 79% in the third quarter versus a year ago. And even though sales growth in US stores that’ve been open for at least a year didn�t break records like they did in the first and second quarters, they still jumped by a lot more than analysts were expecting � and without help from government stimulus checks this time around.

 

 

Why should I care?

For markets: Two can play at that game.

In September, Walmart launched Walmart+ � a membership service that gives customers free shipping on items including produce and grocery, and an unapologetic attempt to compete with Amazon Prime. But seeing as the company didn�t say much about the scheme in its update, investors will have to wait to find out how it�s been going. Meanwhile, Amazon is returning the favor: it launched prescription drug delivery service Amazon Pharmacy on Tuesday � a long time coming, considering the ecommerce giant bought American online pharmacy PillPack back in 2018.

The bigger picture: Ho ho oh no�

Good earnings aside, the rest of the year isn�t without its challenges for Walmart. Fresh data out on Tuesday showed US retail sales growing by just 0.3% in October compared to the month before, and that could slow even more as coronavirus cases rise and government benefits lapse. Just in time for the all-important holiday season too�