Synopsis More of Walmart's future profitability is likely to come from its sales of ads on Walmart. com and from fees it collects from merchants using its online marketplace and delivery services, than from sales of merchandise at its 10,000 stores, its chief financial officer said on Tuesday. AP More of Walmart's future profitability is likely to come from its sales of ads on Walmart. com and from fees it collects from merchants using its online marketplace and delivery services, than from sales of merchandise at its 10,000 stores, its chief financial officer said on Tuesday. "Today, the vast majority of our overall profits are attributable to in-store brick-and-mortar in the U. S. ," John David Rainey, Walmart's CFO, said at a Raymond James Conference. "If you fast forward 5 years, we are much less dependent on that as an income stream than some of these other faster-growing parts of our business. " Services, such as fees Walmart collects from third-party sellers on Walmart. com, the cut it gets if Walmart fulfills those orders to shoppers and the dollars that advertisers spend through Walmart's growing retail media business, are the higher-margin, faster-growing parts of Walmart's business, Rainey said. Over time, they will change the composition of Walmart's profit and loss statement, he said. Retailers ranging from Amazon, Target and Walmart Inc to grocers such as Tesco Plc are working aggressively to attract big advertisers to their websites. Most recently, Amazon disclosed $11. 6 billion in revenue from its ad business in the fourth quarter. Renamed Walmart Connect in 2021, Walmart's retail media business offers brands ad space at its U. S. stores and allows the use of its shopper data to make ads more effective, even on websites and apps Walmart does not own. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The business has grown rapidly since then, with sales rising nearly 30% to $2. 7 billion in its fiscal year ended Jan. 31. In the fourth quarter, ad sales rose 41% year-over-year, the company said last month. Walmart, the world's largest retailer by revenue, has also been investing heavily in building out its third-party marketplace on Walmart. com, which Rainey said offers more than 400 million products right now. "The more eyeballs that are coming to your digital platforms, the more advertisers want to spend money," Rainey said adding that advertising margins typically range in the 70% to 80% range. By contrast, Walmart's margins fell nearly 1 percentage point to 24. 1% in its latest fiscal year. "The common thread through all of them is a greater digital engagement with our consumer, said Rainey, who took up the CFO job in April last year. "Convenience . . . really resonates with consumers, and it allows us to have these distribution points as consumers lean more into e-commerce over time. They are all very interrelated. " Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Tuesday, 07 Mar, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Companies ET Markets More India may Pull Plug on FAME II After Next Fiscal India is likely to discontinue the second phase of the ₹10,000 crore Faster Adoption and Manufacturing of Electric Vehicles in India or FAME II scheme after the next financial year, government officials familiar with deliberations said. Foxconn Reassures K’taka, Telangana on Investments Hon Hai Precision Industry, better known as Foxconn, has assured the governments of Karnataka and Telangana that it will work with them to further the expansion of its electronic manufacturing base in the country. Platform to Update DigiLocker Docs Via Aadhaar in Works The government is developing a platform to help citizens who store their documents in DigiLocker to auto-update their address and other demographic details across departments through Aadhaar, officials told ET. Read More News on Walmart Sales tesco plc amazon walmart india walmart inc raymond Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox. . . . more less ETPrime stories of the day Strategy Stock Radar: Down 20% from highs! A bounce back on cards as IRFC is trading near crucial support area 3 mins read OTT Pay to peek! Will Netflix’s password-sharing policy open new revenue stream for the OTT player? 8 mins read Ed-tech Key calls Unacademy has to make: focus on verticals or services; and unlocking value in acquisitions 8 mins read Subscribe to ETPrime.