Walmart, Shopify Report Strong Q4 Sales but Brace for 2021 Falloff

E-commerce and retail heavy hitters Shopify and Walmart enjoyed a record-breaking 2020, but Q4 earnings may foreshadow a less than remarkable 2021.

Online only: Shopify reported $978 million in Q4 sales—a 94% year over year (YoY) increase. The Covid-19 vaccine rollout, however, will likely prompt many shoppers to return to brick and mortar stores.

• Shopify CFO Amy Shapero said it expects to continue to grow in 2021, but at a slower pace.
• The company wants to boost investments in its Shop App and Shopify Fulfillment Network, and expand internationally.

Omnichannel options: Walmart missed quarterly earnings expectations, but still hit record earnings, bringing in ~$152 billion in revenue—a 7.3% YoY increase.

• US e-commerce and same-store sales grew by 69% and 8.6%, respectively.
• Walmart said it will raise wages for 425,000 workers—more than a quarter of its workforce—to at least $13/hour.
• CEO Doug McMillon told investors the company wants to bolster automation to increase capacity for curbside pickup.

Looking ahead...It’s a foregone conclusion that e-commerce will continue to be a driving force for retailers—the question is to what extent. Shopify's strategy in 2021 will be to build buyer loyalty and retention, according to its earnings call, while Walmart falls back on fortifying its brick and mortar operations.