A new research report from a Wal-mart analytics and financial research firm found that the company’s online grocery business will continue to provide some profits and will add about $8 billion to Wal-marts total sales in 2021.
The study, which is expected to be released on Monday, finds that online grocery sales will likely grow to about $17 billion in 2021, with the company reporting about $9 billion of net revenue.
The report also finds that Wal-mans online grocery unit is expected for $15 billion in gross profit in 2021 but will be able to generate $2.4 billion of non-GAAP earnings, which will come from revenue that is not related to online grocery.
Wal-Marts total online sales will be between $3.1 billion and $3 billion in 2020, according to the study.
“Walmart will continue online grocery as a business strategy that continues to generate positive cash flow and generate a high level of profitability,” said Scott A. Ecker, chief analyst of the analytics and finance research firm Ecker Partners.
“The business is well positioned to continue to grow, and will likely continue to do so in the future, despite the current economic climate and the ongoing efforts to limit the impact of the ACA.”
The study finds that the online grocery market is expected grow from $6.2 billion in 2010 to $14.2, $13.9 billion in 2022 and $13 billion in 2023, with Wal-mas online grocery units estimated to grow from just under $12 billion in 2012 to $19.4 in 2021 and $20.6 in 2027.
The research firm also found that Walmans grocery business is expected add about 2 million jobs to the United States in 2021 with the Wal- mans grocery business generating $10.6 billion of direct payroll jobs and the company estimating $13 million in net job losses.
Walmans retail business, which includes its online and bricks-and-mortar grocery stores, is expected expand by about 2.4 million jobs between 2021 and 2022.
“With its robust online business, Wal- marts retail business is poised to continue its long-term trajectory as one of the world’s leading suppliers of groceries and other groceries products,” said John D. O’Leary, senior vice president of research at Ecker.
“In addition to growing online grocery, Walmarts business is focused on delivering its online services to consumers through its own stores and by leasing its existing stores and facilities.”
Wal- mart has a large presence in grocery online, but the company has struggled to grow online sales since it closed its online grocery stores in 2012.
It said last year that it will shut its online groceries business in 2021 to focus on brick-and, mortar stores.
Walmamas online grocery is a part of the companys grocery division.
The company said last month that it would shut down its online grocer business, saying that it needed to focus more on retail.
The e-commerce company said that its online sales would increase by more than 10% in 2021 from 2021 to 2021.
Walmart also said last week that it expects to report net income of $4.1 per share in 2021 for the year.