So you guys from quarter-to-quarter, year-to-year will see us make progress, and not every quarter, maybe up into the right in every category, but if you look at what happens from a trend point-of-view, those are the things we expect to deliver and because operating income is growing faster than sales, we — our plan requires that we grow return on investment at a higher rate over time. That’s the plan.
Kelly Bania: Thank you.
Operator: Our next question is from the line of Paul Lejuez with Citi. Please proceed with your question.
Paul Lejuez: Hey. Thanks, guys. You have a really big e-com business that continues to grow at a rapid pace. I’m curious if you could talk about what’s driving that growth from a traffic versus ticket perspective and how the growth in the marketplace sellers that you’ve seen are contributing to that growth. Also, curious if you could talk a little bit about general merchandise performance online. I think you threw out some numbers last quarter about certain categories on the general merchandise side, would love to hear how they performed online this quarter. Thanks.
John Furner: Hi. Good morning, Paul. It’s John, I’ll start with Walmart U.S. and then pass it over to Kath and Chris to talk about the other segments. I think if — as you step back and look at the growth, one, we’re pleased with our online pickup delivery business from stores, we have strength in food. The team has continued over the last few years to expand our capacity, and more importantly, they made improvements on key metrics like the one we call Perfect Order which is getting customers what they want, when they want, and I think that’s a reflection of better in-stock in food, overall that’s helped us with our share gains and the food category. With marketplace really pleased with the progress the team has made with Tom Ward and Manish having their First Summit as we mentioned earlier.
In the quarter, we’re seeing more sellers come online, our assortment has grown significantly. And just this week, I was in one of the new fulfillment centers that John David mentioned, the Lancaster, Texas which is a great facility managed by a very qualified team and it’s of course reassuring to see the amount of marketplace inventory that’s come again and seeing the number of marketplace sellers which we’re grateful for those sellers who trust us to do their fulfillment and that’s been — that’s been promising. Now, in the month of November, we had our first event last week and getting into our holiday season, we have a long way to go from here until the end of holidays. But, really pleased with the results in marketplace, which is of course reflective of results in art and apparel, and gifting and other categories that are in line with the question you asked about general merchandise.
So these are important businesses because they help customers shop the way they shop with — the way they want to shop, when they want to shop. And marketplace over time, of course, will be a key driver to some of the other businesses like advertising as more sellers find customers on the Walmart Marketplace, they’ll want to use services like our fulfillment services and our advertising business. So, turn it over to Kath to talk about international.
Kathryn McLay: Yeah. Thank you for that question. I think if you look at our e-commerce outlook, it’s minus 3 and that’s I don’t think is a really — it’s distorted by Baby Day. If you actually look at the underlying growth across the businesses, Walmex grew by 16% from an e-com perspective, Canada grew by e-com — in e-com by 16%, a part of that was rolling out Delivery Pass to the number — toward a significant number of stores. If you look at China, their business grew — their e-com business grew by 38%, so I think all of the teams are really focused on really getting the disciplines right of a perfect order and making sure that the experience to the customer is delightful. I think we continue to learn from each of the different businesses.
The Flipkart team were here with us yesterday and it’s fascinating to see what they’re learning through using gen AI in the — in three big — three Big Billion Days. There’s just some really clever capability that make it very seamless and easy to be able to shop online. And then, if you look at it from a marketplace perspective, we launched in Mexico, Canada, Chile and South Africa marketplace during the last 12 months. Obviously, Flipkart is our largest and most and more mature marketplace business. But we are seeing accelerated marketplace growth also through our cross-border trade. We opened that through Mexico and Canada to U.S. cross-border sellers. And lastly, we launched Walmart Fulfillment Services in Mexico, Canada and South Africa in the past 12 months.
So we’re seeing good results, but we’re really positive about the growth potential of both Marketplace and Walmart Fulfillment Services.
Chris Nicholas: So, it’s exciting time. Paul, thanks for the question. I think what’s really interesting for all of us, but definitely for Sam’s is that members want this, and so we’re giving them what they want and we are at 13% of sales, 16% growth in the quarter. But we think it’s a really huge opportunity, and as I think about e-commerce for and omnichannel sales for Sam’s, I think about a digitally connected member. So Scan and Go teaches our members that we are a digitally relevant business and they look to shop online and on the — whether on the web or on the apps and we feel really good about that. We’ve got all-time highs in that space. The other thing is really interesting is, as we look at the new members. We got an all-time high number of membership in Sam’s and a lot of those people that are coming in now with digitally engaged members that coming in and they’re buying new memberships digitally.
