Walmart Marketing Strategy: Ads Up 38%, E-commerce Up 23%
Walmart's marketing strategy in 2026 runs on advertising, e-commerce and price. In the quarter ended July 31, 2026, per Walmart's August 20, 2026 results, global advertising grew 38%, global e-commerce grew 23% and Walmart U.S. comparable sales rose 2.6%, under CEO John Furner. Walmart also plans to use $2.9 billion in tariff refunds to lower prices, and its stock fell about 9% after the outlook disappointed investors.
Walmart Connect is Walmart's advertising business, which sells ad placements to brands across Walmart's websites, app and stores. Sparky is Walmart's AI-powered shopping assistant. Comparable sales, or comps, measure sales at stores open at least a year, which strips out the effect of new openings.
What did Walmart report for the second quarter of fiscal 2027?
Walmart reported net sales up 5.9% to $186.1 billion for the quarter ended July 31, 2026, and raised its full-year outlook, per its August 20, 2026 SEC filing and Yahoo Finance.
Two ratios follow from those figures, and both are EPR calculations. Walmart U.S. produced about 67% of net sales and about 87% of operating income in the quarter, so the U.S. business carries most of the profit. Consolidated operating income was about 5.0% of net sales.
How does Walmart turn advertising into a growth engine?
Walmart turns advertising into a growth engine by selling ads on the traffic its e-commerce and stores already generate. Walmart Connect grew 43% in the quarter, and Walmart U.S. advertising including VIZIO grew 38%, per Yahoo Finance on October 6, 2026.
Walmart also expanded its ad tools by acquiring Vibe, a self-service platform that lets advertisers measure results against shopping behavior. EPR's retail media analysis compares Walmart's ad business with Amazon, Kroger and Uber.
Why it works: An ad on a retailer's own site can be tied to a purchase in the same account, so an advertiser sees sales, not only impressions. Walmart reported on August 20, 2026 that its U.S. e-commerce operating margin improved because advertising and membership revenue carry higher margins than product sales.
How are Sparky and fast delivery shaping Walmart's message?
Sparky and fast delivery are the proof points in Walmart's message that speed and convenience now match price. The number of customers using Sparky rose 70% from last year, and those customers spent 40% more per order, per the August 20, 2026 call transcript.
Fast delivery in the U.S. grew 48% in the quarter, per Furner on the same call. CFO John David Rainey said U.S. e-commerce incremental margins reached the high single digits to low double digits, growing at twice the rate of the overall business margin. EPR's report on Walmart's Fortune 100 AI framework covers the company's AI plan in more detail.
How is Walmart using tariff refunds in its price message?
Walmart is using tariff refunds to support a price-cut message. CFO John David Rainey told CNBC on August 20, 2026 that the retailer was eligible for $2.9 billion in tariff refunds, had just under $100 million left to receive, and planned to use them to lower prices, per CNBC.
Furner framed the quarter around price, speed and convenience across a broad assortment in the earnings release. The refund gives the price message a funded source, which a claim of lower prices alone does not have.
What risks does Walmart's strategy carry?
Walmart's strategy carries three risks the quarter shows: investors want more growth, drug price caps weigh on pharmacy sales, and profit rose faster than net income.
Walmart's stock fell about 9% after its outlook disappointed Wall Street, per CNBC on August 20, 2026. U.S. comparable sales of 2.6% came in below the 3.5% analysts expected, per FactSet as cited by CNBC, partly because price caps on certain drugs took effect.
Operating income rose 28.8%, but net income attributable to Walmart fell 9.4%, per Yahoo Finance. Walmart U.S. executive Dave Guggina said on the call that health and wellness customers spend three times the average Walmart customer, so a pharmacy drag matters beyond its 80 basis points.
What did Walmart's 2016 store closures teach about communications?
Walmart announced on January 15, 2016 that it would close 269 stores worldwide, including 154 in the U.S., and it paired the news with plans to open more than 300 stores, per NPR.
The closures affected about 16,000 workers, 10,000 of them in the U.S., and 102 of the U.S. stores were Walmart Express, a small format piloted since 2011, per NPR. The company said more than 95% of the closed U.S. stores were within 10 miles of another Walmart, so it hoped to place associates nearby. It said affected workers would be paid for 60 days plus severance if eligible, per NACS on January 18, 2016 and Fox 9.
The stores represented less than 1% of global revenue, per NPR. Then-CEO Doug McMillon said the company would open well more than 300 stores in the next year, per Anadolu Agency.
Why it works: A closure announcement that names the number of workers, the pay commitment and the nearby-store distance gives local reporters the three facts they would otherwise have to chase. Walmart published all three on January 15, 2016, per NPR and NACS.
What can retail teams copy from Walmart?
Retail teams can copy four moves from Walmart: pair bad news with growth news, name the worker commitment up front, sell advertising on owned traffic, and tie a price message to a funded source. The table lists the evidence and a check to run first.
Move
Walmart evidence
Check before copying
Pair bad news with growth news
2016: 269 closures announced with 300-plus planned openings, per NPR
Whether the growth plan is concrete enough to quote
Name the worker commitment up front
2016: 60 days of pay and nearby placement stated at announcement, per NACS
Whether the commitment is one you can fund
Sell ads on owned traffic
2026: Walmart Connect up 43%, per Yahoo Finance
Whether ads hurt the shopping experience
Tie the price message to a funded source
2026: $2.9 billion in tariff refunds earmarked for lower prices, per CNBC
Whether the savings are verifiable by shoppers
Say what funds a price cut in the same announcement as the cut. For how AI answers rank grocers against Walmart, see EPR's Wegmans analysis.
What did Walmart report for the second quarter of fiscal 2027?
Walmart reported net sales up 5.9% to $186.1 billion for the quarter ended July 31, 2026, and raised its full-year outlook, per its August 20, 2026 SEC filing and Yahoo Finance. MeasureQ2 FY27 resultSource Net sales$186.1 billion, up 5.9%Yahoo Finance Walmart U.S. net sales$125.18 billion, up 3.5%Yahoo Finance Global e-commerceUp 23%SEC filing Walmart U.S. comparable salesUp 2.6%, with an 80 basis point drag from health and wellnessSEC filing Global advertisingUp 38%Yahoo Finance Walmart ConnectUp 43%Yahoo Finance Operating incomeUp 28.8% to $9.38 billionYahoo Finance Net income attributable to WalmartDown 9.4% to $6.36 billionYahoo Finance FY27 outlookNet sales up 4.0% to 5.0%; adjusted EPS $2.80 to $2.87SEC filing Two ratios follow from those figures, and both are EPR calculations. Walmart U.S. produced about 67% of net sales and about 87% of operating income in the quarter, so the U.S. business carries most of the profit. Consolidated operating income was about 5.0% of net sales.
How does Walmart turn advertising into a growth engine?
Walmart turns advertising into a growth engine by selling ads on the traffic its e-commerce and stores already generate. Walmart Connect grew 43% in the quarter, and Walmart U.S. advertising including VIZIO grew 38%, per Yahoo Finance on October 6, 2026. Walmart also expanded its ad tools by acquiring Vibe, a self-service platform that lets advertisers measure results against shopping behavior. EPR's retail media analysis compares Walmart's ad business with Amazon, Kroger and Uber. Why it works: An ad on a retailer's own site can be tied to a purchase in the same account, so an advertiser sees sales, not only impressions. Walmart reported on August 20, 2026 that its U.S. e-commerce operating margin improved because advertising and membership revenue carry higher margins than product sales.
How are Sparky and fast delivery shaping Walmart's message?
Sparky and fast delivery are the proof points in Walmart's message that speed and convenience now match price. The number of customers using Sparky rose 70% from last year, and those customers spent 40% more per order, per the August 20, 2026 call transcript. Fast delivery in the U.S. grew 48% in the quarter, per Furner on the same call. CFO John David Rainey said U.S. e-commerce incremental margins reached the high single digits to low double digits, growing at twice the rate of the overall business margin. EPR's report on Walmart's Fortune 100 AI framework covers the company's AI plan in more detail.
How is Walmart using tariff refunds in its price message?
Walmart is using tariff refunds to support a price-cut message. CFO John David Rainey told CNBC on August 20, 2026 that the retailer was eligible for $2.9 billion in tariff refunds, had just under $100 million left to receive, and planned to use them to lower prices, per CNBC. Furner framed the quarter around price, speed and convenience across a broad assortment in the earnings release. The refund gives the price message a funded source, which a claim of lower prices alone does not have.
What risks does Walmart's strategy carry?
Walmart's strategy carries three risks the quarter shows: investors want more growth, drug price caps weigh on pharmacy sales, and profit rose faster than net income. Walmart's stock fell about 9% after its outlook disappointed Wall Street, per CNBC on August 20, 2026. U.S. comparable sales of 2.6% came in below the 3.5% analysts expected, per FactSet as cited by CNBC, partly because price caps on certain drugs took effect. Operating income rose 28.8%, but net income attributable to Walmart fell 9.4%, per Yahoo Finance. Walmart U.S. executive Dave Guggina said on the call that health and wellness customers spend three times the average Walmart customer, so a pharmacy drag matters beyond its 80 basis points.
What did Walmart's 2016 store closures teach about communications?
Walmart announced on January 15, 2016 that it would close 269 stores worldwide, including 154 in the U.S., and it paired the news with plans to open more than 300 stores, per NPR. The closures affected about 16,000 workers, 10,000 of them in the U.S., and 102 of the U.S. stores were Walmart Express, a small format piloted since 2011, per NPR. The company said more than 95% of the closed U.S. stores were within 10 miles of another Walmart, so it hoped to place associates nearby. It said affected workers would be paid for 60 days plus severance if eligible, per NACS on January 18, 2016 and Fox 9. The stores represented less than 1% of global revenue, per NPR. Then-CEO Doug McMillon said the company would open well more than 300 stores in the next year, per Anadolu Agency. Why it works: A closure announcement that names the number of workers, the pay commitment and the nearby-store distance gives local reporters the three facts they would otherwise have to chase. Walmart published all thr
What can retail teams copy from Walmart?
Retail teams can copy four moves from Walmart: pair bad news with growth news, name the worker commitment up front, sell advertising on owned traffic, and tie a price message to a funded source. The table lists the evidence and a check to run first. MoveWalmart evidenceCheck before copying Pair bad news with growth news2016: 269 closures announced with 300-plus planned openings, per NPRWhether the growth plan is concrete enough to quote Name the worker commitment up front2016: 60 days of pay and nearby placement stated at announcement, per NACSWhether the commitment is one you can fund Sell ads on owned traffic2026: Walmart Connect up 43%, per Yahoo FinanceWhether ads hurt the shopping experience Tie the price message to a funded source2026: $2.9 billion in tariff refunds earmarked for lower prices, per CNBCWhether the savings are verifiable by shoppers Say what funds a price cut in the same announcement as the cut. For how AI answers rank grocers against Walmart, see EPR's Wegmans ana
Who is the CEO of Walmart?
John Furner is President and CEO of Walmart, per the company's August 2026 earnings release.
How fast is Walmart's advertising business growing?
Global advertising grew 38% and Walmart Connect grew 43% in the quarter ended July 31, 2026, per Yahoo Finance.
How much did Walmart's e-commerce grow?
Global e-commerce grew 23% in the quarter, per Walmart's SEC filing.
When did Walmart close 269 stores?
Walmart announced the 269 closures on January 15, 2016, including 154 U.S. stores, per NPR.
What is Walmart Connect?
Walmart Connect is Walmart's advertising business, which sells placements to brands across its sites, app and stores.
How much will Walmart receive in tariff refunds?
Walmart was eligible for $2.9 billion in tariff refunds, with just under $100 million yet to receive, per CFO John David Rainey on CNBC. Last updated October 10, 2026. How this page was made: EPR drafted it with AI assistance from the named primary sources above, and an editor should verify each figure before publication.
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EPR Editorial Team
The Everything-PR Editorial Team is the staff byline for news, analysis and features on communications, reputation, AI visibility and digital discovery. Everything-PR has published since 2009. AI tools assist with research and drafting, and every article is reviewed by a human editor before publication. Coverage follows the Editorial Policy, and substantive corrections are noted on the article under the Corrections Policy.
