NEW YORK: Walmart became the first retailer ever to hit US$1 trillion in market valuation on Tuesday, riding on a year-long rally that has seen its shares rise nearly 26%, placing it among the ranks of Big Tech heavyweights such as Nvidia and Alphabet.
Walmart’s ascent has been notable as it has managed to tap into a mix of appealing simultaneously to higher-income customers seeking value and convenience and retaining its core base of lower-income shoppers. The stock has surged 468% over the past decade, outpacing the S&P 500’s 264% gain, in part due to that dual strategy, which competitors have struggled to replicate.
In the past five years, the retailer has expanded its online marketplace to over half a billion items, launched one-hour delivery, created Walmart+ to rival Amazon Prime, and built a US$4-billion advertising business that boosted margins.