Walmart released Q2 earnings in August, with eCommerce growing 6% y/y and on a doubling pace in 2 years. Now up to $75B in eCommerce sales.

I increasingly feel that Walmart doesn’t feel it needs to do something “different” to win. Just follow the best practices of Amazon and Target, but continue adding new ideas quickly as a fast-follower. A few notes:

• Walmart Connect (Advertising) more than doubled year on year and active advertisers up 170%. A little scary that Amazon almost matched this on what is certainly a higher base, indicating to me that Amazon is still accelerating away from Walmart. (they dodged a question about the precise margin impact).

• I thought the mention of WMT Mexico’s Walmart Pass - unlimited free shipping from stores was an encouraging nod towards Target’s ship from store strategy.

• Walmart mentioned 5-6 years ago it felt that eCommerce was a “defensive” investment. Now it feels they are using it as offensive. About 6 years ago is when they acquired Jet. I think what they learned from Marc Lore is not what to do but instead, HOW to do it. Meaning, whatever you do, innovate quickly and learn.

• Grocery: Walmart referenced Nielsen in a note about share gains, growing 6% year on year. Units growing faster than $ in this segment. Improved stock levels.