In its third quarter ending October 31, Walmart posted a bigger-than-expected increase in same-store sales and beat expectations for profit amid a surge in its online business with higher spending on electronics, sporting goods and groceries. The retailer’s sales at US stores rose 6.4 per cent, excluding fuel. Analysts had estimated these sales to increase by 4.16 per cent. Walmart’s sales from its US market grew by 79 per cent with strong results across all channels which helped boost same-store sales and profit margins.

The surge in demand for essentials seen at the peak of the coronavirus lockdowns has carried into the second half of the year, with consumers relying on its same-day delivery options and store pick-up services to buy everything from groceries to sneakers.

The COVID-19 pandemic has also forced retailers like Walmart to drastically rethink their business strategies for key holiday seasons. Walmart incurred about $600 million in additional COVID-19 expenses that included higher wages for warehouse workers and bonuses for store employees, as well as spending more on cleaning facilities. It’s operating income jumped by 22.5 per cent to $5.79 billion in the third quarter, while Walmart reported adjusted earnings per share of $1.34 that topped expectations for $1.18. Total revenue rose by 5.2 per cent to $134.71 billion, beating estimates for $132.23 billion.

In September, Walmart launched its subscription service Walmart Plus, touted as a rival to Amazon.com's Prime subscription, which includes perks like free shipping and streaming services.