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Walmart has been fighting fire with fire, so to speak, allocating $2 billion two years ago to grow its online presence. The expenditures appear to be paying off too, as does the September acquisition of e-commerce newcomer Jet.com . After the company’s online sales growth pace deteriorated all the way through the end of 2015, its e-commerce arm started to ramp up its growth beginning in the second quarter of 2016 when online sales grew 29% on a year-over-year basis. Last quarter, online sales in the U.S. grew 63%, while the volume of merchandise sold online was up 69%. A big piece of that e-commerce growth stems from the company’s most online shopping fashion recent strategy. That is, Walmart has made a point of matching or beating Amazon’s low-cost shipping offering , sacrificing margins to gain market share. Orders of $35 per more qualify for free two-day shipping. Other bright spots on the retailer’s income statement include improved operating income on a constant-currency basis (though down when factoring in the adverse impact of foreign exchange rates).
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