What: Traditional retailer Walmart demonstrates remarkable evolution with 72% stock growth in 2024, driven by e-commerce success and increasing appeal to affluent shoppers.

Why it is important: This evolution illustrates the potential for established retailers to reinvent themselves through strategic investments in e-commerce, technology, and premium offerings while maintaining their core value proposition.

Walmart's transformation has resulted in exceptional market performance, with shares rising 72% in 2024 and an additional 16% in early 2025. The company has successfully expanded its customer base, with 89% of households earning USD 100,000+ now shopping at Walmart, up from 77% five years ago. Its e-commerce revenue has reached USD 100 billion, representing about one-fifth of Amazon's size, compared to just 10% in 2017. The retailer's evolution includes enhanced merchandising with premium brands like Bettergoods and viral products like the "Wirkin" bag. This success stems from a decade of strategic investments, with U.S. operations alone spending over USD 42 billion in capital expenditure over the past three years, an 80% increase from the previous period.

IADS Notes: Walmart's transformation demonstrates comprehensive retail evolution. November 2024 data shows significant growth in fashion and higher-income shoppers, while February 2024's achievement of USD 100 billion in e-commerce sales marks a digital milestone. December 2024's report of the company's best year since 1998, with an 82% stock value surge, validates its strategic direction. This success is supported by September 2024's implementation of AI-driven retail solutions and October 2024's launch of AI-powered personalized shopping experiences, showing how Walmart is effectively combining traditional retail strengths with technological innovation to capture market share across customer segments.

How Walmart has won over more affluent shoppers