The strategy includes slowing the pace of new store openings and is centered on cracking the dominance of Amazon, reuters.com reports.
Notwithstand the shipping to most of the US in one day, Walmart plans to double the number of its large warehouses focused on ecommerce sales to 10 in 2016.
It spent more than USD 3 billion in August 2016 to buy ecommerce startup Jet.com, which attracts millennial shoppers, and could help boost sales.
Walmart is looking for online sales growth of 20% to 30% in the H2 of 2016, excluding the recent sale of Chinese website Yihaodian. Online sales currently account for about 3% of total sales.
As a result of its investments in ecommerce, Walmart is now forecasting flat earnings for the FY ending January 31, 2018, down from a previous forecast of profit growth. It estimated capital expenses at about USD 11 billion, similar to 2016.
FY 2019 earnings-per-share growth is likely to be at the low end of its previous forecast of 5% to 10%. The company has accelerated investments in ecommerce and digital from about USD 300 million in 2013 to USD 1.1 billion in 2016 for a total of about USD 3 billion, excluding acquisitions.
Only about 20% of capital spending would go to store openings. In FY 2018, Walmart plans to build 35 supercenters compared to 69 in 2016.
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