Walmart's growing share of high-income shoppers helped its e-commerce business turn into a powerhouse
Business Insider
February 19, 2026
AI-Generated Deep Dive Summary
Walmart has emerged as a formidable player in the e-commerce space, driven by its growing appeal to high-income shoppers. The company reported its first full year of profitability in e-commerce in 2025, a significant milestone after years of investment. This success is largely attributed to higher-earning households, who are drawn to Walmart's combination of low prices and expanding convenience. These customers are not only purchasing groceries but also exploring fashion and other categories, contributing to the company's broader sales growth.
Walmart's e-commerce revenue surged nearly 25% in the fiscal year, reaching over $150 billion, while overall sales grew 4.7% to $713.2 billion. Despite Amazon surpassing Walmart as the world's largest company by revenue in 2023, Walmart's physical presence—95% of U.S. households within an hour of a store—gives it a competitive edge in delivering goods quickly. This proximity has become a key asset in attracting and retaining high-income shoppers.
The retailer's focus on convenience extends beyond groceries to fashion, which has led sales growth in general merchandise. Walmart's CEO highlighted that these customers are new to the platform, drawn by its expanded assortment and on-trend styles. Additionally, the integration of AI features, such as the Sparky shopping assistant bot, has already shown promising results, with half of app users contributing to larger transaction sizes.
While Walmart still trails Amazon in online sales, its progress signals a strong foundation for growth. The company's ability to leverage its physical stores while enhancing digital offerings positions it as a credible competitor. This strategy not only appeals to a wider audience but also underscores the importance of balancing online and offline experiences in retail. For businesses, Walmart's success highlights how adapting to consumer demand through convenience, assortment, and technology can drive long-term growth and profitability.
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Originally published on Business Insider on 2/19/2026