Walmart has delivered its Q4 FY26 results, which show the titanic US grocer delivered a strong performance during the festive season. This points to a shared story on both sides of the Atlantic: grocery and essential retail are outperforming the wider market as discretionary categories continue to struggle.
Walmart reported a 5.6% increase in revenue and a 10.8% rise in operating income for Q4 FY26, driven by strong digital performance. Global ecommerce grew by 24%, with Walmart U.S. ecommerce up 27%. This marks the eighth consecutive quarter of over 20% digital growth, demonstrating Walmart’s progress toward omnichannel maturity at scale.
Grocery strong on both sides of the Atlantic
This trend is mirrored by Britain’s leading supermarkets, which also reported strong Q4 results despite a broader slowdown in UK retail. According to Deloitte’s February 2026 update, UK retail sales volumes fell 0.3% in Q4 2025, as discretionary spending was constrained by inflation, a weaker labour market, and cautious consumer sentiment. However, this decline was mainly in non-essential categories. Grocery remained a bright spot, supported by 4.5% year-on-year food inflation and continued prioritisation of essential purchases.
Walmart benefited from its scale, advertising revenue, and frequent grocery visits, a trend also seen among UK supermarkets. Consumers shifted more spending to food and everyday essentials, while grocers adopted value-focused strategies and loyalty-based pricing. Sainsbury’s, Waitrose, M&S, Tesco, and Morrisons reported sales increases of 5.7%, 5.5%, 4%, 3.7%, and 3.1% respectively, with Tesco retaining its market lead. Lidl achieved the largest market share gain, rising 0.5% to 7.8%, driven by its Lidl Plus loyalty program.
Global volatility less of a concern
Both markets show that supermarkets are less exposed to global volatility. US and UK grocers rely on domestic sourcing, frequent shopping patterns, and strong private-label offerings. This provides resilience during macroeconomic pressure and, in the UK, offers protection from US president Donald Trump’s newly announced 15% trade tariffs, which are expected to impact discretionary categories more than food retail.
Walmart’s results highlight the benefits of a diversified revenue base. Its advertising business grew 37% globally, including a 41% increase in Walmart Connect in the US, providing a high-margin buffer against cost pressures. UK grocers, though smaller in scale and retail media profitability, are also adopting margin-protecting strategies such as tighter inventory control, selective promotions, and rapid expansion of own-label ranges to meet value-driven shopper demand.
In both the US and the UK, supermarkets are performing well because they are less dependent on global growth cycles and more focused on domestic essentials. While broader retail faces cautious consumers and structural challenges, the grocery sector remains resilient and, in some cases, is experiencing renewed growth.
While Walmart’s Q4 results attract attention, the parallel success of UK’s leading grocers reffirms grocery as the most reliable driver of retail stability on both sides of the Atlantic.
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