Are retail sales stagnating? Advertising is on the rise at Walmart

Next Thursday, Walmart is expected to provide an update on its sales and profitability figures, with like-for-like sales growth below 4 per cent for the first time since 2024, mainly due to petrol prices (To cope with these challenging times, Walmart has reduced the prices of 7,000 items in its range).

Bucking the trend, Walmart Connect’s advertising revenue is up by 44 per cent; whilst this represents an infinitesimal fraction of total turnover ($713 billion), it accounts for a third of operating profit (EBIT).

Walmart has identified AI as the next phase of growth for Walmart Connect, as more and more consumers use AI chatbots to search for deals. The retailer has begun testing adverts within its AI shopping assistant, Sparky…

Almost a third of consumer searches now originate from AI models, according to data from digital commerce consultancy Flywheel…

Amazon is further ahead in transforming its proprietary chatbot, now called Alexa for Shopping, into a new advertising channel, but Walmart’s 2024 acquisition of smart-TV manufacturer Vizio has enabled it to expand Connect beyond its website and into its television streaming services.

The disparity in growth between Walmart’s retail and advertising sales is evident in this Reuters table

Drafted on 18 August, updated on 19 August 2026