Walmart’s Canadian operations demonstrated robust performance in the fourth quarter of fiscal year 2025 (Q4 FY25), showcasing significant growth across various channels and reinforcing its strategic importance within Walmart’s international operations. The company’s focus on e-commerce expansion, competitive pricing, and enhanced customer engagement has yielded positive results, positioning it as a key contributor to Walmart’s global success.
In Q4 FY25, Walmart Canada’s net sales reached $6.3 billion, marking a 5.5% increase compared to the same period last year. This growth was driven by strong performance across all channels, with notable contributions from both in-store and online sales. The festive season played a pivotal role, as increased consumer spending during holiday events bolstered sales figures. E-commerce sales experienced a remarkable surge of 30%, primarily attributed to the expansion of store-fulfilled pickup and delivery services. The food and consumables categories maintained consistent growth, while general merchandise also saw positive momentum.
E-Commerce Expansion and Digital Engagement
Walmart Canada’s e-commerce growth rate of 30% year-over-year underscores the company’s successful digital transformation efforts. Key factors contributing to this surge include the increased utilization of store-fulfilled pickup and delivery services, which offer customers convenient shopping options.
The expansion of Walmart Fulfillment Services (WFS) in Canada led to a 20% increase in the number of WFS sellers, resulting in an 85% growth in sales of items delivered through WFS. Additionally, the launch of the Data Ventures platform in Canada has broadened Walmart’s analytics capabilities, enabling improved digital engagement with Canadian consumers.
Financial Performance Highlights
The gross profit rate in Canada saw an uptick, largely due to improved shrink management practices. However, operating expenses also increased, primarily driven by investments in associate wages and higher technology spending aimed at enhancing operational efficiency.
These strategic investments, while elevating expenses, are essential for sustaining long-term growth and maintaining a competitive edge in the market. Consequently, operating income experienced a decline, reflecting the balance between increased costs and revenue growth.
Comparable Sales Growth Trend
Walmart Canada’s comparable sales growth exhibited a positive trajectory throughout FY25, culminating in a 5.8% increase in Q4. This reflects a strong recovery, particularly during seasonal promotions and heightened consumer spending periods. The quarterly comparable sales growth rates were as follows:
- Q4 FY24: +1.5%
- Q1 FY25: +3.8%
- Q2 FY25: +3.4%
- Q3 FY25: +3.1%
- Q4 FY25: +5.8%
This consistent upward trend indicates robust consumer demand and effective sales strategies implemented by Walmart Canada.
Strategic Role in International Growth
Canada has been identified as a key growth market within Walmart’s international portfolio, alongside Mexico and China. In Q4 FY25, Walmart International’s net sales grew by 5.7% in constant currency, with Canada playing a significant role in this expansion. The strong performance of Walmart Canada underscores its strategic importance in driving the company’s global growth objectives.
Kathryn J. McLay, President and CEO of Walmart International, expressed satisfaction with Walmart Canada’s top-line growth and highlighted the impressive 30% increase in e-commerce sales. She noted in an earnings call that this growth has accelerated each quarter over the past year, emphasizing the positive response from customers to Walmart Canada’s value-driven approach. McLay stated, “We’re pleased with the top-line growth we’re getting in Canada. But one of the real highlights for me has been the e-commerce performance, which has been up 30%. And their growth has accelerated every quarter over the last year.”
In alignment with its commitment to providing value, Walmart Canada offered a Canadian Thanksgiving meal promotion priced at CAD $40 for four people. This initiative reflects the company’s focus on price positioning and convenience to enhance customer engagement. McLay added, “We were able to offer a Canadian Thanksgiving lunch for $40 for four people. So really leaning into making sure we have the price positioning right, but also the customers really responding from a convenience perspective.”
Marketplace Expansion and Data Analytics
The expansion of Walmart Fulfillment Services (WFS) in Canada has been a significant contributor to the company’s e-commerce growth. The 20% increase in WFS sellers and the subsequent 85% growth in sales of WFS-delivered items highlight the success of this initiative. Furthermore, the introduction of the Data Ventures platform in Canada has enhanced Walmart’s ability to analyze consumer data, leading to more personalized and efficient customer experiences.
John David Rainey, Chief Financial Officer and Executive Vice President of Walmart Inc., discussed the financial investments made in Canada, noting that international sales grew by 5.7% in constant currency, with Canada contributing a 5.5% increase. He highlighted that operating income grew at a faster rate than sales, indicating improved efficiency and profitability. Rainey also pointed out the positive traffic and unit growth in Walmart Canada, especially in general merchandise during promotional events.
New Leadership at Walmart Canada
In January 2025, Walmart Canada announced the appointment of Venessa Yates as its new President and Chief Executive Officer. She brings a wealth of experience to the position, having previously held senior leadership roles within Walmart’s international divisions. Her strategic vision and commitment to innovation are expected to drive Walmart Canada’s growth and enhance its market position.
Major Investment in Canadian Expansion
Demonstrating a strong commitment to the Canadian market, Walmart Canada unveiled plans to invest approximately C$6.5 billion ($4.51 billion) to expand its store network and enhance its supply chain infrastructure. This investment, the largest since the company’s inception in Canada nearly 30 years ago, includes the construction of dozens of new stores, starting with five new supercenters in Ontario and Alberta by 2027. Additionally, the company plans to modernize its distribution centers to improve efficiency and better serve its customers.
In addition to expanding its physical footprint, Walmart Canada announced the sale of its fleet business to Canada Cartage. While the terms of the deal were not disclosed, this move is part of Walmart Canada’s strategy to streamline operations and focus on core retail activities.
