Walmart shares fall 10pc due to slow online sales
Online sales giant Walmart has reportedly lost its share value as they suffered their biggest percentage fall for more than three decades on Tuesday after disappointing online sales figures for Christmas period.
Online sales were 23 per cent higher in the three months to December. However, that was less than half the growth recorded in the previous quarter and lower than in the same period of 2016.
Shares in the world's largest retailer fell just over 10 per cent to $94.11.
The retailer said its online revenues totalled $11.5 billion last year, but it lost money on those sales. Chief executive Doug McMillon said e-commerce losses would be "about the same" for 2018.
He told analysts the company was making progress in its efforts to compete with Amazon and other prime competitors.
"We're confident in our strategy to transform the company," McMillon said. "It's really about providing more convenience to customers."
It plans to spend more on Walmart.com and cut back on marketing for its Jet.com site, which aimed at younger and better off shoppers. Walmart paid $3.3 billion to buy Jet.com in 2016, reports BBC.
While sales at Walmart's US stores rose by a better than expected 2.6 per cent in the fourth quarter, net profit sank 42 per cent to $2.2 billion (£1.6 billion).
