Walmart at Piper Sandler conference: marketplace growth accelerates

On Wednesday, September 16, 2026, Walmart (WMT) addressed the Piper Sandler 5th Annual Growth Frontiers Conference to discuss the rapid acceleration of its Marketplace business. The company attributed this growth to a comprehensive system of fulfillment, advertising, and store integration, but acknowledged that the endeavor is still in its early stages of development.

Manish Joneja, Walmart's Senior Vice President and Global Head of Marketplace and Fulfillment Services, explained that the business is reaping the benefits of years of investment in assortment expansion, delivery speed improvements, and enhanced product discoverability. Walmart is leveraging its extensive 4,500-store network as a fulfillment advantage, distinguishing itself from competitors who rely more on drop-shipping.

Walmart Fulfillment Services (WFS) now handles 50% of Marketplace sales, driving high conversion rates and margin improvements.

In the first and second quarters, Marketplace sales surged by over 50% year-over-year, surpassing figures from 2025. Walmart is expanding its Marketplace operations into Canada, Mexico, and Chile, aiming to blur the line between first-party and third-party commerce. Despite the swift growth, Joneja emphasized that there is no single factor responsible for the improvement, but rather the cumulative impact of various initiatives.

Marketplace has evolved into a significant component of Walmart's second P&L, alongside advertising, Walmart Fulfillment Services, and data services. The company highlighted several metrics showcasing Marketplace's contribution to growth and efficiency. Marketplace sales grew more than 50% in Q1 and Q2 year-to-date, while general merchandise same-store sales in Q2 rose in the low single digits. Online pickup and delivery experienced a 43% increase in the latest quarter, continuing its upward trajectory.

Approximately 50% of Marketplace sales are fulfilled through WFS, which shows 50% higher conversion rates and 15% lower fulfillment costs compared to non-WFS items. Sellers utilizing WFS report a 1.5x sales growth and margins about 15% better. When advertising is added to WFS-fulfilled inventory, Walmart has observed up to 5x gross merchandise value growth.

Walmart's EBITDA reached $44.07 billion over the past year, with a return on equity of 23%, underscoring the company's operational efficiency. The success of Marketplace is attributed to the integration of various elements within Walmart's ecosystem, including fulfillment centers, store-based delivery nodes, advertising tools, and marketplace infrastructure. These components are reinforcing one another, according to executives.

A key aspect of Walmart's strategy is utilizing its physical store base, which Joneja described as nodes that enable Marketplace and e-commerce. The company has 4,500 stores, next-generation fulfillment centers, and a decades-long supply chain, with 95% of America within a 3-hour delivery range and 60% within a sub-30-minute reach.

This network facilitates same-day, next-day, and 2-3 day delivery options based on order and fulfillment method. Marketplace inventory is strategically forwarded-deployed into store backrooms based on local demand, demographics, and seasonal patterns.

Currently, the focus remains on general merchandise, particularly fashion, home, hardlines, electronics, and toys, while grocery represents a smaller portion of the business. Marketplace helps fill assortment gaps identified through customer search behavior and demand, introducing brands previously not associated with Walmart, such as Nespresso, La Roche-Posay, and Medicube.

Recent additions have expanded the product range to appeal to diverse customer segments, including higher-income households exploring various categories.