Walmart Stock Beat the Market in 2024. Can It Repeat in 2025?

Walmart Inc. (WMT) stock had a stellar 2024, soaring 76.4% year to date, outpacing broader market benchmarks and solidifying its position as a retail powerhouse. But can it maintain this momentum in 2025? Let's dive into the key factors that contributed to Walmart's success in 2024 and explore the potential challenges and opportunities for the coming year.



Key Factors Driving Walmart's Success in 2024

1. Omnichannel Retail Strategy: Walmart's seamless integration of online and offline channels, including curbside pickup and delivery services, attracted a wider audience, with higher-income households contributing 75% of its U.S. share gains. This strategy is expected to remain a significant driver of growth in 2025.
2. E-commerce Growth: Walmart's e-commerce business surged 27% in the third quarter of fiscal 2025, driven by pickup & delivery and the marketplace. This growth is likely to continue in 2025, as Walmart invests in technology and expands its marketplace offerings.
3. Advertising and Membership Programs: Walmart's advertising revenues grew by 28% in the third quarter of 2025, driven by Walmart Connect and international platforms like Flipkart. Membership income also saw robust growth, with Walmart+ and Sam's Club delivering double-digit increases. These high-margin ventures are expected to contribute to Walmart's growth in 2025.
4. Cost Management and Operational Efficiency: Walmart's focus on everyday low prices (EDLP) and everyday low cost (EDLC) helped maintain its competitive edge. By investing in automation and supply chain optimization, Walmart is expected to continue improving operational efficiency and managing costs in 2025.
5. Global Expansion: Walmart's operations in key regions like Mexico (Walmex), India (Flipkart and PhonePe), and China play a pivotal role in driving its long-term growth strategy. As Walmart continues to expand its global footprint, it is likely to benefit from growth opportunities in emerging markets.



Potential Challenges and Opportunities for 2025

1. Inflation and Economic Uncertainty: Inflation remains a concern, and economic uncertainty could impact consumer spending on discretionary items. Walmart will need to navigate these challenges and adapt its pricing strategy accordingly.
2. Increased Competition: The retail sector is more competitive than ever, with rivals like Target (TGT) and Costco (COST) also investing in e-commerce and omnichannel strategies. Walmart must continue to innovate and differentiate itself to maintain its market share.
3. Regulatory Scrutiny: Walmart's global expansion and acquisitions, such as Flipkart, may face regulatory scrutiny and potential hurdles. The company must stay vigilant and address any regulatory concerns that may arise.
4. Sustainability and Social Responsibility: As consumers and investors increasingly prioritize sustainability and social responsibility, Walmart must demonstrate its commitment to these areas to maintain its reputation and attract long-term investors.



In conclusion, Walmart's strong performance in 2024 was driven by its omnichannel retail strategy, e-commerce growth, advertising and membership programs, cost management, and global expansion. To maintain its momentum in 2025, Walmart must navigate potential challenges such as inflation, increased competition, regulatory scrutiny, and the need to prioritize sustainability and social responsibility. With its strong financials, strategic investments, and resilience in a challenging economic environment, Walmart is well-positioned to continue its growth trajectory in the coming year.