Walmart finds its cushion in advertising as tariffs bite
By Seb Joseph
Walmart has a plan to stay profitable as President Donald Trump’s tariffs push up costs. It’s called advertising.
In the second quarter, Walmart’s ad revenue jumped 46% year over year, a number padded by the addition of Vizio, the smart TV maker it picked up last year. Strip that out, and the U.S. business still looks strong: Walmart Connect, its retail media network, grew 31%.
That’s impressive in any cycle. Right now — in a margin-squeezed retail world — it’s vital half of the retailer’s incremental profit last quarter came from advertising, membership and marketplace fees. Advertising is what lets Walmart absorb higher import costs while keeping prices low enough to pull in shoppers.
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Source:: Digiday
