Since its inception, Walmart has promoted itself as a company that offers “everyday low prices.” This philosophy, combined with its ability to attract affluent consumers, has propelled the company's stock value to unprecedented heightsIn 2024, Walmart's stock price soared by an impressive 74%, outperforming the average growth of notable companies in the U.Smarket, excluding the AI powerhouse NvidiaAmong the top 20 publicly traded companies by market capitalization in the United States, Walmart's annual increase ranked fourth overall, behind only Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing Company.

In contrast, the S&P 500 index noted a rise of only 23.3% for the year, indicating a general struggle for traditional consumer brandsFor instance, key players like Nike and Anheuser-Busch saw dramatic declines, with their stocks plummeting nearly 30%. Meanwhile, both Coca-Cola and Pepsi wrapped up the year with disappointing performances as well.

Wall Street investment firms that have kept a close eye on Walmart attribute this surge in stock price to several key factors

These include rapid growth in its e-commerce segment, an expanding membership framework, and a peculiar shift in consumer behavior amid high inflation in the United States, where the affluent are increasingly opting for more economical shopping options.

In China, Walmart's performance also reflects this trendIn the third quarter of last year, Walmart China reported a sales increase of 17% year on year, with total sales for the first three quarters exceeding 100 billion yuanA significant portion of this revenue was generated by Sam's Club, a membership-based warehouse retailer primarily catering to middle-class families in major cities.

As a testament to its remarkable growth, Walmart once again ranked first on the global Fortune 500 list for the 11th consecutive year, overtaking its long-time rival Amazon, which occupied the second spotWalmart's stock price continued to rise, contributing to a staggering increase in the wealth of Sam Walton's family

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In just 12 months, their net worth surged by a jaw-dropping $172.7 billion, which translates to around $470 million daily—an astronomical figure in most contexts.

This surge even allowed the Walton family to surpass the Al Nahyan family of the UAE royal family, reclaiming their spot at the pinnacle of the world's wealthiest familiesJust a year ago, the most-discussed stocks on Wall Street included the so-called ‘Magnificent Seven’—Nvidia, Amazon, Meta, Google, Tesla, Apple, and MicrosoftCollectively, these stocks represented approximately 30% of the S&P 500's market capitalization, averaging an impressive 75% increase over the year, all closely tied to the current AI momentum.

During that time, few gave much thought to Walmart, a traditional retail company registering a modest stock increase of just 12% for 2023. The retailer had often faced criticism for its slow transition to online operations, and its big-box store format had been out of place in many regions

However, 2024 marked a significant turnaround for Walmart, vastly exceeding market expectations.

In the first quarter, Walmart released a financial report that surpassed both revenue and profit forecasts, subsequently revising its performance outlook for the entire year upwardFollowing this, Walmart shares entered a bullish phase, ultimately achieving an astonishing rise of nearly 80% with a market capitalization approaching $700 billion mid-year.

As of January 13, 2025, Walmart's total market cap had surged to $735.3 billionIn comparison, most of the prominent tech stocks from the previous year, except Nvidia—which still remained robust with a remarkable 177.7% growth—fell behind Walmart in terms of stock price increase.

Numerous investment firms anticipate that Walmart's stock price will continue its upward trendAccording to a report from Barron's, of the 41 sell-side analysts monitoring Walmart's shares, 37 have rated it as a 'Buy' or 'Outperform,' while only three recommended a 'Hold' and one a 'Sell.'

The engines propelling Walmart's remarkable performance, however, are contrary to its traditional narrative

During a recent earnings call, Walmart's management attributed the company's stellar results to a couple of factors: increased interest from price-sensitive consumers amid an inflationary environment and a standout performance from its eCommerce units.

In 2015, Walmart was dramatically overtaken by its eCommerce rival, Amazon, whose stock price soared by 18% overnight, marking a pivotal moment for the traditional retailerFor a long time afterward, Walmart was often seen as merely a supporting backdrop to the rapid growth of eCommerce.

That same year, Walmart embarked on an extensive "omnichannel transformation" initiativeBy 2019, its eCommerce revenue reached $36.9 billion, demonstrating an impressive 47% year-on-year growthHowever, this still accounted for only about 7% of its overall sales, capturing a mere 4.6% of the nation's eCommerce market shareThe pandemic presented a crucial opportunity for Walmart, enabling it to surpass competitors like Best Buy and Target, subsequently claiming the title of the second-largest eCommerce retailer in the United States.

Research by CICC outlines Walmart's aggressive eCommerce strategy over recent years, which included acquiring multiple eCommerce platforms to shift its traditional image and attract a more diverse, younger consumer base

The company has also focused on refining its delivery and customer service networksAs of January 2020, Walmart had expanded home delivery services to over 1,600 locations, with next-day delivery coverage reaching 75% of the U.Spopulation and more than 6,100 grocery pickup and delivery points globally.

Walmart's latest financial disclosures reveal that in the third quarter of 2024, its total sales grew by 5.5%, while eCommerce performance soared at an impressive rate of 27%. International eCommerce sales experienced an even more robust 43% growth.

Furthermore, beyond the unexpected expansion of its online business, Walmart is tapping into the affluent market sector, attracting a surprising number of wealthy customers despite its long-standing reputation as a budget-friendly retailerAnalyst Kelly Bania indicates that sales growth from all income groups is increasing at Walmart, particularly in the U.S

market, where 75% of market share gains stem from high-income households.

Faced with high inflation, many affluent consumers are now opting for Walmart’s offeringsCFO Rainey highlighted in an interview that high-income customers often visit Walmart to try products, finding value that surprises themThe retailer has updated several locations to offer enhanced shopping experiencesRainey noted, “Walmart looks quite different now than it used to.”

In a bid to captivate even more affluent clientele, in April 2024, Walmart launched its premium private-label food line, "Bettergoods," showcasing eye-catching packaging and plant-based products aimed at Gen Z and upscale shoppersWalmart has also made renovations to 800 stores, adding high-end products like $50 silk sleep masks and $230 duck breast to their shelves.

According to GlobalData, a market research firm based in London, high-income customers earning $100,000 or more have been the primary contributors to Walmart's increasing market share, reflecting the retailer's recent strategic focus on maintaining that momentum.

In China, similar growth drivers exist for Walmart through online channels and urban middle-class consumers, albeit through different vehicles

With a highly developed eCommerce landscape, traditional retail models are struggling for survivalHowever, membership-based stores, like Sam's Club, are thrivingFollowing fierce pricing wars sparked by consumer demand, Sam's Club has frequently trended on social media in the past year.

The rapid escalation in popularity of Sam's Club aligns with its impressive growth metricsIn their third-quarter report for 2024, Walmart China reported net sales of $4.9 billion, marking a 17% year-on-year increase, mainly fueled by a 22% growth in membership revenues, with several quarters of double-digit sales growth.

Recent reports indicated that Sam's Club's total sales in 2024 had reached 100.5 billion yuan, with online sales accounting for over 48%. However, Sam's has refrained from commenting on this speculation, neither confirming nor denying the figure.

As a primarily membership-driven retailer, membership fees constitute a key revenue source for Sam's Club

After several years in China, the annual membership fee rose from 150 yuan to 260 yuanMembership still only grants access for shopping, and no additional benefits are providedConsequently, the model inherently attracts a consumer base with substantial purchasing power, typically consisting of urban middle-class families.

Sam's Club's success in a competitive retail landscape can be attributed to its robust online channel developmentThe chain has partnered with various eCommerce platforms, including creating an official flagship store on JD.com, allowing non-members to shop, albeit at higher prices.

Moreover, Sam's Club has built its own pre-storage system to offer services like "Rapid Delivery" and "Citywide Delivery" for its membersCFO Rainey stated during a Q2 2024 earnings call that about 50% of Walmart China's sales stemmed from online channels.

Every shift, whether among urban middle-class families or affluent consumers opting for budget-friendly stores; whether online or offline—these changes at Walmart reflect a fundamental understanding of evolving consumer demands.

Retail is an industry without secrets