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Walmart was built on a simple belief: people make the difference. Millions of associates have worn a Walmart badge over the years. While the ways our associates serve customers have changed and continues to change, the purpose that drives us has stayed the same. We help people save money and live better. This timeless purpose inspires and motivates us, and it's one of the reasons we continue to thrive as a company today. Our culture is guided by four timeless values: respect the individual, act with integrity, serve our customers and members, and strive for excellence. They are our how. Other than our purpose and values, the other constant in our company is change. We believe in innovation and embracing change while staying true to who we are. By doing this, we create value, drive growth, help communities thrive, and strengthen the world around us.
It's our more than 2 million associates around the world who make the difference, and they always will. While we'll always be people-led, we're also powered by technology like never before. We create delightful experiences, intelligent operations, and enable a better future through innovation. Combining the strengths of our stores and e-commerce capabilities, we now serve people what they want, when, where, and how they want it, through a seamless omnichannel experience, while maintaining our everyday low prices, building trust, and lowering our cost to serve. We give customers value for their money. We save them time. We do our part to strengthen their communities and planet. Our why is to help people and their families live a better life. We're not just a company; we're a community of people who make a difference every day, and there's never been a more important time to be part of it.
Good morning. Welcome to everyone that's participating virtually, and for those of you that are here in person, I hope you enjoyed yesterday's visits. We really appreciate you making the effort to be here. It's helpful when you can experience things firsthand. When you put together what you saw yesterday, what you'll see today, and what many of you saw in Florida at our last conference, you can see how different our supply chain and our business is becoming. We're excited to share what we're doing at Walmart and how we're changing as a company. We're executing our strategy to improve how we serve customers and members while changing the shape of our business model and driving higher returns. This is a long-term strategy, and we're still in the early innings.
Before I give you an update on our business, I want to acknowledge the environment that we're in and that it's changing. I know many of you are all working through how that might influence the choices you make in a business like ours or the investment choices you make. John David, and I will talk more about the short term before we begin Q&A later this morning, but I want you to know how confident I remain in our company. I've seen us navigate times like the period after 9/11, the global financial crisis, the pandemic, and more recently, high inflation. While in the short term, we're not immune to some of the effects, we are positioned to play offense. Nothing about the current environment impacts our confidence in our business or our strategy. The changes we're making add even more strength and flexibility for our future.
We're focused on the strategy we're implementing, and I hope you'll focus on that during our presentations. We'll come back to the short term, but this multi-year plan has the ability to create a lot of shareholder value. The headlines for today are: first, we're driving growth by improving customer and member experiences. People are choosing us because we're even more relevant in their lives. We positioned ourselves to serve people how they want to be served, and we're in a set of businesses with a lot of headroom. This first point is about top-line growth. Second, we're creating shareholder value by strengthening our business model. We can invest in lower prices, invest in our associates, and invest in technology while growing profit faster than sales, strengthening cash flows, and delivering higher returns for shareholders.
You'll hear a lot of detail today on the rest of this plan from the team. You'll hear about the performance of our stores and clubs, our e-commerce business, including Marketplace, and how our newer businesses like advertising and membership are scaling. I want to invest my time on why I believe we're going to be an increasingly successful company over time. We'll earn more business due to a combination of our purpose, our culture, and how we use technology to put our unique assets to work. As I look around the world, I don't see another company like Walmart, and I wouldn't trade hands with anybody. We're positioned in big markets with a strong set of related businesses. We're proving we can learn, change, and innovate, and we know how to execute. We're an and company. We're people and tech, stores and e-commerce, innovation and execution.
I like this description of our company. We're a people-led, tech-powered, omnichannel retailer dedicated to helping people save money and live better. I'll use this description to frame my time with you today. I like that it starts with we. We're a team. As Sam Walton said, the secret is that we're all working together. We believe it'll be our culture, our humanity, that differentiates us even more in the future. This description starts with we and people-led because we know it's our people that make the difference. You can see my direct reports on the screen, and I want to express my gratitude to them. Each one of them is an extraordinary leader, and the way they're working together to learn, lead change, and transform our company is impressive. It's not just us, of course. We have a very deep and experienced leadership team.
Sam Walton moved leaders around, and we still are because it expands our perspectives, teaches adaptability, develops and reveals leadership skills, and it strengthens our culture. Many of our leaders have cross-business units, functions, or merchandise categories. We're developing their digital acumen as well as strengthening their retail capabilities. We're looking for altruistic servant leaders that enjoy learning, driving change, and cannot stand to lose. This group is special, and this company is unique. We have a set of four core values. We respect each other. We act with integrity. We do everything to serve our customers and members, and we strive for excellence. Our behaviors, which form our culture, are meant to bring those values to life every day. We're clear on the short list of things that we want to keep and strengthen, like our purpose and culture, but we're wired for change on the rest.
We're a ladder of opportunity for people. You can start anywhere and climb as far as your capabilities and hard work enable you to go. Over the past decade, our investments in wages have helped us reduce turnover and retain talent. Not only are we investing in wages, cash bonuses, and healthcare, but we're also paying for educational certificates and degrees. You don't have to have a college degree to succeed in our company, but if you want one, we'll help you get one. Either way, we'll help you get the skills you need to advance your career. We now have more than 1.1 million people with retirement savings in our 401(k), and we have more than 475,000 associates participating in our stock purchase plan, up 16% in participation since the 3 for 1 split last year. 81% of those who participate are hourly associates.
Our associates benefit when you, the shareholders, benefit. We have a culture and incentives that encourage people to stay and build a career. We love that a truck driver now makes up to $115,000 in their first year. Last year, our top-performing U.S. store managers earned more than $500,000, and more than half of all store managers earned a bonus of $100,000 or more. Our top-performing market managers earned up to $620,000. We'll keep investing in our people because happy associates equal happy customers. Prioritizing people doesn't mean that we can't be great with technology. We can do both, and there's power in the and. We believe the combination of a purpose-driven, people-centric culture with world-class technology is the winning formula. We're increasingly tech-powered through a combination of digital and physical assets.
Consider how the combination of technology, our vast amount of valuable data, the physical automation we're deploying through our supply chain, and the tools we're putting into the hands of our people can result in better customer and associate experiences and eliminate or replace tasks. Our ability to personalize, our ability to anticipate, our ability to better flow inventory, to grow sales and reduce costs are different now. We have the most capable group of technologists that we've ever had and a set of relationships with other companies that help us drive innovation with more speed. We've been using machine learning and AI for many years for customer personalization to enable our associates and to improve inventory flow. Much of that work has been driven by traditional predictive AI.
In more recent years, generative AI has been playing a bigger role, and we're in the early stages of putting agentic AI to work. Digital agents will operate independently and manage complex tasks, and physical AI that mimics the complex environments in our stores, clubs, and supply chain will help optimize our decision-making. This morning, when you hear one of us say AI, you can think of it in all of those forms. When it comes to customers, here are two examples of applications. First, we built a personal shopping assistant named Sparky. Last year, we shared how AI helped us enhance our product catalog and improve solution-based search. Looking ahead, we're excited to introduce a new way for customers to shop with us. Sparky is an intelligent assistant that does things like help customers explore new products, plan a birthday party, or complete their weekly shopping mission.
Very soon, Sparky will be available to all of our users on our apps and sites. It's learning and improving every day. Second, we built a tool called Trend to Product, which helps us with product-to-market speed. Our first apparel collection designed with Trend to Product arrived last month. It took out 18 weeks of our typical timeline, and we saw strong sell-throughs. Kath will share more about this later. Using tech to get faster at our scale without compromising on quality, value, and our supply chain standards is really exciting. When it comes to associates, here are two examples. First, we built an AI assistant for our merchants, and we've named it Wally. It does things like analyze sales performance across stores, markets, and channels for our buying team. It can diagnose why a certain item is under or overperforming and help us improve inventory management.
It will transform from being an AI assistant to an AI agent that fine-tunes our item, quantity, and inventory flow decisions. Second, our developers and engineers have AI tools to aid our development lifecycle from planning, writing, and testing code to data analysis and troubleshooting. In addition to how AI is helping us strengthen our business, we've been getting better at leveraging the tech we build across our business segments and geographies. We're investing in and becoming stronger with regard to technology while simultaneously remembering that we're in the people business. Tasks will get automated, jobs will change, and many years from now, we'll still employ a large number of people and be happy to do so. To us, the term omnichannel just means we serve people however they want to be served.
We'll be present when and where they want to shop, and we'll be good at all of them. Customers want four things from us. First, they want the best quality, the best value on quality merchandise. As always, everyday low prices are important. Price leadership drives our business. Second, our customers want pretty much unlimited choice. Our assortment is now hundreds of millions of items and growing over time. Assortment breadth drives our business. Third, they want to be delighted, whether that's experiencing our merchandise and associates in a store or club, picking something up curbside, having it delivered to their doorstep or into their home. We're going to keep getting better in store and in club through our investments in our team and remodels. We're going to keep getting better at accuracy and speed with regard to curbside pickup and delivery.
Store-fulfilled delivery keeps growing and is an important differentiator. Having stores and clubs so close to so many people is a huge advantage. Our coverage of U.S. households with same-day delivery has grown by 22% over the last two years. We reached 93% of U.S. households today and are still expanding. Whether it's being delivered from a store, a club, or a fulfillment center, or whether it arrives on the ground or through the air with a drone, we're getting things to people faster. The variety of experiences we can provide is unique, and we're doing a better job telling people just how large our assortment has become and how fast we are at delivery. Days are becoming hours, and hours are becoming minutes. Convenience drives our business. The fourth dimension is trust.
People want to do business with companies that treat them fairly and take care of them when there's a problem. These four dimensions are how we bring our purpose to life. Helping people save money and live better is our reason for being. Live better includes helping them be healthier by keeping prices low for fresh food. It includes helping them save by providing easy access to financial services that reduce friction. It includes taking action to protect our planet. It includes helping strengthen communities with the jobs we create, the taxes we pay, the hours we volunteer, and our charitable giving. Last year in the U.S., we donated 752 million pounds of food to food banks, spent $1.1 billion with veteran-owned businesses, and we've hired more than 400,000 veterans and military spouses since 2013. We help communities respond and recover when disasters strike.
Walmart and the Walmart Foundation have been actively involved in delivering food, water, and supplies to communities affected by natural disasters, including in Asheville, North Carolina, in September. Communities like Asheville are not just someplace we serve. We're a part of that community. Our purpose, strategy, and strengthened financial future are aligned. We've got the right business model design, and we're executing against it. You can think of our business as a combination of the traditional retail store P&L and a second P&L comprised of newer digital businesses that start with first and third-party e-commerce and include membership, advertising, fulfillment as a service, and data monetization. The combination of these two P&Ls creates a third, more compelling P&L with stronger growth, better margins, and higher returns. That's across countries and segments. Over the years, we've demonstrated capital discipline. We've invested aggressively in new growth opportunities like Flipkart and PhonePe.
We have also closed underperforming stores, clubs, and clinics, exited countries, and discontinued businesses that did not have a clear path to success. You can see the addition and subtraction beside me. We are now in a set of businesses that have runway and are complementary to each other. We will continue to be good stewards of capital. To summarize today's headlines, first, we are driving growth by improving customer and member experiences. We are positioned to serve people how they want to be served, and that will drive our top line. We will keep investing in our stores and clubs and add some new ones, and we will get even better with curbside and delivery in its various forms. We are positioned well digitally, not just physically. We are growing our business not only through our app and site, but we are growing via social commerce, and we will grow through our personal shopping assistant. We will be where customers are.
Second, we're creating shareholder value as we evolve our business model and apply technology to improve productivity. We can improve return on investment even as we invest in our future. We're an and company. People and tech, stores and e-commerce, innovation and execution. We like our position, and we like our plan. We wouldn't trade with anyone, and we're just getting started. John David, I'd like to turn it over to you. Please welcome John David Rainey.
Good morning. Thank you all for being here. At our last investor meeting in 2023, we outlined these building blocks of value creation: growth, margin, returns. We still believe that these are the appropriate focus areas for us today. If there's a message that we want you to take away from these two days, it's this: we have fundamentally changed as a business.
We've made years of thoughtful, strategic investments, investments that have positioned us to serve our customers and members through an omnichannel model, which has resulted in a financial model that yields much higher returns. Importantly, we believe that we have unique competitive advantages that make this durable. At our last investor meeting, we talked about the investments in our business that we've made over the last 10 years: investments in associate wages, investments in price, investments in technology, and an improved customer and member experience. We said that these investments have positioned us to achieve much more attractive financial outcomes going forward. We outlined the financial framework that you see in front of you. We said that we expect, on average, sales to grow about 4% per year. Some years it may be more, some years it may be less, but on average, about 4% per year.
We said that we expect operating profits to grow faster than sales. In the two years since, we've delivered on those commitments. Our top line has grown over 5%. Operating income has grown almost 10%. While the market may be a little nervous about consumer sentiment at this very moment, there's nothing, nothing that changes our view on our ability to deliver this framework over the coming years. We find that our investments are yielding results, and our strong profit growth has come with significant contributions from e-com and newer businesses like advertising and data, while profits in stores and clubs continue to grow. We still believe that this is the right financial framework for our business today. This does not happen by accident. This is the result of execution from what we believe is the best group of employees in retail: our associates.
Being people-led and tech-powered, it's not just a slogan. It's one of the things that makes us unique. It's who we are. Let's zoom out for a second and take a five-year view of our business. We've invested heavily in automation and technology, and as a result, we've seen our assets increase about 2.5% per year. Those investments have resulted in a different design for our business: an omnichannel fulfillment model that serves our customers and members however they want. During this period of time, our sales have grown over 5% per year, outpacing our asset growth. Said differently, we've increased sales by over $150 billion without adding any meaningful number of stores or clubs, resulting in improved asset turnover. We're getting more out of our stores and clubs than before, and e-com has contributed to 50% of that growth.
The strength of our underlying retail and e-com business has allowed us to grow into newer businesses. As a result, overall profit growth has been faster at 6% annually. This improved asset turnover, along with better profit conversion on sales, has resulted in ROI expanding nearly 200 basis points. We've set off this virtuous cycle, investing in the business to drive above trendline growth at higher incremental margins, which in turn allows us to reinvest back into the business and generate improved financial returns for shareholders. This cycle should result in ROI continuing to improve into the future. Our business has fundamentally changed. In fact, I would argue that if you put these last five years on a page with the next five years, the hardest thing to believe on that page is the last five years. Our business, particularly our newer businesses, have momentum.
We are truly and uniquely a scaled omnichannel retailer. We are one of one. Historically, we've been primarily known for low prices. Today, our value proposition extends to convenience, and that resonates with a wide range of customers and members in important markets around the world. We now serve 93% of America with same-day delivery. In China, the majority of our e-com orders are delivered in less than one hour, and we're scaling up quick commerce options in India. As we've made the necessary investments to offer channel choice to our customers, we're seeing the attractive incremental margins that come from more digital businesses. Our e-commerce business is approaching 20% of sales today. Over the next five years, we expect it to contribute 50%, 50% to top line growth. What we have built is a different business model, one that drives improved returns.
Importantly, we believe this is sustainable. It is durable. We have a retail customer base of about 270 million weekly customers, one of the world's largest, and a global network of stores and clubs to serve them. Adding digital capabilities, our customers and members now have a variety of options to shop. The challenge in scaling any digital business is customer acquisition. We had that already with hundreds of millions of customers and members coming to our properties each week. Our digital channels now let our customers and members shop with us however, whenever, and wherever they want. These past few years, we have been investing to transform the shopping experience. In the U.S., we now offer next-day shipping, same-day delivery, and express delivery as fast as one hour as options. We believe that we can do this better than anyone because more than 90% of the U.S.
Population is within 10 miles of a Walmart store. What enables all of this is our industry-leading supply chain network and our highly committed associate workforce. As you experienced yesterday, we've been investing significantly in supply chain automation and in tech tools to empower our associates. This gives us the ability to operate at scale and speed. We have a very large customer base, and our leadership in high-frequency food and staples is the starting point for shopping baskets, and it keeps our customers coming back. We're expanding our assortment, especially in general merchandise, which is complemented by our marketplace growth. Our membership programs, both at Sam's Club and Walmart Plus, have been very popular with our customers and members. Their growth, especially Walmart Plus, is helping expand our customer base and increase customer loyalty.
To give you a data point on how impactful this can be, total digital spend from our Walmart Plus membership base has grown at a rate of over 50% over the last year. Omnichannel accessibility, price leadership, assortment, membership programs, these are a winning combination and are helping us gain share, improve engagement, and build loyalty. We are winning with our customers, and that gives us an opportunity to deepen our relationship with suppliers and sellers and offer them additional services like advertising and data. Our membership base and customer relationship opens the door to the growth of our financial services business. These businesses, ads, data, and fintech, have grown at a 40% annual rate over the last four years. I will tell you, and I think this is important, that is a good way to think about the growth in these areas over the next five years as well.
With that level of growth, these areas will increasingly become a more meaningful proportion of our business mix over the next few years. This is happening across all of our segments. We have talked about the key pillars of our omni strategy, including membership and marketplace, and the value of adding ads, data, and fintech on top of that. With the evolution of our business mix and our international presence, this view of Walmart will help understand the full spectrum of opportunities available to us. The orientation of this chart has sales growth on the Y-axis and profit growth on the X-axis. Our U.S. stores and clubs are the foundation of our business, and it is where we derive the majority of our profits today. To that, add our presence in various international businesses, which are growing sales and operating income at an even faster pace.
Across all markets, we're mixing in the digital commerce and services. The U.S. e-commerce opportunity and our China and India businesses are particularly significant. They're delivering high sales growth and delivering high incremental margins for the enterprise. These are all highly interconnected. They're stabilized by a strong foundation with several high-growth digital areas. The point that I want you to take away from this slide is this: the fastest-growing parts of our business also have the highest incremental margins. We expect that two-thirds of our profit growth over the next several years will come from these digital and high-growth businesses. That is why we believe that we'll continue to grow profits faster than sales. Our omni strategy combines physical and digital businesses in a way that creates synergies between the two. Over the last several quarters, we've consistently made progress in improving the financial performance of our e-commerce business.
Last June, at our shareholder meeting, you asked me about the timing of our e-commerce profitability, and I said that we expected it in the next year or two. We're pleased to share that this quarter, the quarter that we're in, we're seeing e-commerce profitability in our U.S. business, and we expect to achieve profitability on an annual basis this year. This is a milestone moment for our company, and we expect to see the benefits and margins in the future years. To sum it up, we are uniquely positioned with our combination of omnichannel strength, supplemented by a growing marketplace and membership count, benefiting from the network effect of our market presence. We're building higher-margin ads, data, and fintech businesses, and also expanding our penetration in these high-growth international markets.
Our time-tested operating model emphasizes low prices to customers and cost management discipline, made stronger with our focus on technology and automation. This has taken time to build, but it will provide continued benefits over the long term. I want to talk about our capital structure for a minute. Over the last five years, we've increased the level of capital investment in our business, but that's driven improved returns. ROI has expanded 200 basis points. Operating cash flow has increased almost 50%. We've done that while improving our leverage ratio, giving us more flexibility going forward. We'll continue to invest in the business and high-return projects like the supply chain automation that you all saw yesterday. We'll make the necessary decisions to stop the things that we should stop.
We'll continue to improve ROI, and we'll target a leverage ratio in the range of where it is today, maintaining our investment-grade rating. We like our position. I wouldn't trade it with anyone's. This slide is a good framework for how you should think about our business going forward. The orientation of this chart has % growth on the vertical axis and our planning horizon or time on the horizontal axis. We're confident in the durability of our business model, and we see a consistent financial framework of sales growth of about 4% per year on average. We've told you that we expect operating income will grow faster than sales, leading to margin expansion. As these new higher-margin businesses scale, they'll have an outsized contribution to our profit growth, which is depicted here.
We have also said that as a percentage of sales, CapEx should generally be in the range of 3-3.5% over the next few years. This simple but powerful framework has a lot of potential for shareholder value creation. With profit growing faster than sales, operating cash flow will mirror that and grow faster than sales. With CapEx tied to sales growth, that results in free cash flow growing even faster. With these excess returns, we have the ability to invest in the business and see outsized returns for our shareholders. We would generally expect that capital return to shareholders will be in line with the growth in free cash flow. This is what excites me about our business. This is what excites me about the opportunity in front of us. I feel like we're just getting started.
Before I wrap up, we know the current operating environment is on everyone's mind. I want to spend a couple of minutes on our expectations for the quarter. We're one week into this new tariff environment, and we're still working through what this means for us. As a reminder, more than two-thirds of what we sell in the U.S. is made, grown, or assembled in the U.S. The third that we import comes from all over the world, but China and Mexico are the most significant. Our priorities in this environment are what Doug mentioned yesterday. We want to keep prices low. Our team is experienced with managing price over a portfolio of items. We want to manage our inventory well, and we want to manage our cost.
For the current quarter, the uncertainty and decline in consumer sentiment has led to a little more sales volatility week to week and, frankly, day to day. We still expect Q1 sales to be in the range of guidance of 3-4% growth for the quarter. I'll remind you that we're lapping the 100 basis points headwind from Leap Day this year. Operating income has been harder to predict, and we've widened our internal range of scenarios given the current backdrop. When we guided Q1 in mid-February, we signaled that we expected pressure on OI growth, and that remains the case. There are three things worth noting here. Category mix has been less favorable than what we expected at the beginning of the quarter. General merchandise sales were softer earlier in the quarter, but they've improved as the quarter has progressed.
Second, we see opportunities to accelerate share gains and are maintaining flexibility to invest in price as tariffs are applied to incoming goods. Lastly, and maybe unrelated to the health of the business, we also have a couple of expenses that are coming in higher this quarter. The largest of these is related to casualty claims expense. In total, these amount to about $200 million, which for us is about 300 basis points to OI growth. Our guidance for sales and operating income growth for the full year remains unchanged. In closing, we're focused on the long term. What history tells us is that when we lean into these periods of economic uncertainty, Walmart emerges on the other side with greater share and a stronger business. We do not expect this current period to be any different.
We'll update you on Q1 performance when we report on May 15th. I want to repeat, nothing, nothing about this current environment changes anything that we're discussing with you today. There's a consistency in what we're sharing with what we said two years ago. Our business model is more diversified. It's more durable. I would argue that it's more relevant than ever in this current environment. Thank you. I'll turn it over to Kath to discuss our international segment.
Good morning. We have an extraordinary story to tell at Walmart International. It is a growth story, for sure. It's a story about innovation and the future, but it's also a story about lifting people up, our 500,000 associates, the 95 million customers and members we serve every week, and our reach across 18 countries around the world. I'm really proud of this story in Walmart.
At our last investor conference, we shared these goals. By 2028, we would reach $200 billion in GMV and double our profits and share of our business from e-commerce. By doing that, we would double the size of Walmart International's business. John David talked about the growth targets we expect to see in the coming years for the enterprise, and the international segment is a key driver of that outlook. Walmart International is accredited to growth on the top and bottom lines today, and we expect that to be even more pronounced looking ahead. We are going to continue to improve our operating margins and our return on investment by delivering strong growth in key markets like Mexico, China, and India, and by reducing our e-commerce losses. In India, Flipkart and PhonePe are driving economic growth.
They're bringing jobs and innovation in one of the largest markets in the world, and we are thrilled about what the future in India holds for our business. We are on track to meet these goals that we laid out, and let me tell you why. It starts with how international is driving results. First, we're in the right markets to win. Several years ago, we made the decision to restructure our portfolio. That meant we divested from some markets, and we reinvested in those where we expect to see sustainable growth. Secondly, we're becoming more omni. Our goal is to be the leading omnichannel retailer in every market where we operate. That leverages our store network, and we are making great strides in doing that. Over the past two years, we've increased e-commerce sales by 45% as we bring value and convenience to shoppers.
Finally, we're innovating, sharing what we learn across markets, and developing learning agility. I want to get into this a little bit more later when I'm joined by three of our market presidents, but I feel like this is a muscle that we're quickly building, and I believe it will pay dividends. Coming off a strong FY 2024 and FY 2025, we're being intentional about investing to maintain our growth over the long term. We've made investments in customer acquisition, in the business model, and sorry, in the business with a focus on stores, clubs, and automation, as well as into fast delivery. We've seen that we can make these investments as well as still improve ROI. We're driving growth through investment in our customer experience, and we're creating shareholder value by strengthening our business model.
This is my first time in front of you since I stepped into the role about 18 months ago. I know many of you from my time in Sam's Club as well as in Neighborhood Markets, but I have found International to be something entirely different, and I mean that in the best way possible. We have a saying that we bring Walmart to the world, but we also bring the world to Walmart. What do I mean by that? What I mean is that one of our roles for the enterprise is to open up the aperture of what retail looks like around the world. We are doing that by the role we are playing in our markets. I think that allows us to see a little bit into the future somewhat. Since joining International, I have traveled the globe.
In this role, I think you really have to be out in the markets. You have to see our business. You have to be in our sourcing operations firsthand and up close with our leadership teams, with our associates, with the customers and members, and I have. Here is what I have observed. I like our strategy, and we're executing it well. We have a great leadership team, and our culture is embedded in our markets. I want to linger on that point for just a moment. As you know, we're not complicated in our approach. We want to help people save money and live better. In international, I believe that purpose is even more deeply felt by our customers. I want to share with you a few examples of what I've seen.
In our Central American market, a segment of our customer base has a $1.17 per person per day to feed their family. That's less than the typical cost of a cup of coffee. You can imagine the importance of everyday low prices for these customers. One of our merchants there noticed that bananas weren't selling well. That is a surprise because the staple of a Central American diet is bananas. It turned out that we only sold bananas by the bunch, which costs more and could spoil faster. We started selling individual bananas at $0.08 a piece. This provides a nutritious, affordable snack for our customers, and sales of bananas went up. In Chile, Walmart is the only retailer that serves a remote island just off the coast of Punta Arenas.
The island is called Puerto Toro, and it is almost the furthest south town on the planet. We deliver goods by boat, and I met someone when I was in Punta Arenas who told me that their parents saved 60 hours a month in travel because Walmart now comes to them. In China, a member told me she doesn't have to shop around for the best prices. Why? Because of trust. She trusts that Sam's Club is always going to have the lowest prices on whatever it is that her family needs. There are dozens of stories like this in our markets, and they all say the same thing. Walmart helps people save money and live better, and I'm really proud to be part of that.
As I mentioned earlier, we're driving growth through our investments in our customer experience, and we're creating shareholder value by strengthening our business model. Let's talk more about our growth. I showed you this slide a few moments ago about our goals. These goals are attainable because our associates wake up every day thinking about one thing: our customers and our members. That looks different in each market, but we're more alike than not because our purpose and our values are constant, our culture is strong, and we share our founder's Maverick spirit to embrace change. Driving that change is our use of technology. Doug called our newest innovation, Trend to Product, a way to get faster at scale, and it is by identifying what's cool while it's still cool. Our sourcing team is giving our customers what they want when they want it. Have a look at this.
Trend to Product allows us to move faster and to serve customers better. Think about the time saved at Walmart scale when you turn hours into minutes, when you turn months into weeks, going from design concept to item to store. It's a great example of using AI to become better merchants as we continue to grow and to innovate. Today, I want to look more closely at how we're using technology and sharing ideas to better serve customers in China, India, and Mexico. Over the next few years, we expect significant growth to come from these markets. Please help me welcome Christina Zhu, the President and CEO of Walmart China, Ignacio Caride, President and CEO of Walmex, and Kalyan Krishnamurthy, CEO of Flipkart. Hi, guys. The leader of our other business in India, Sameer Naigam, the CEO of PhonePe, can't join us today.
As I'm sure you've heard, he's busy planning for an IPO in India. This will be a major milestone for PhonePe, which celebrates its 10th year anniversary this year. PhonePe is a leader in financial services, and just last month, it crossed 600 million registered users. That means one in three Indians are now using PhonePe. I'm glad you all could join me. I've talked a little bit about the growth that we're going to expect from these three markets, but Ignacio, I might start with you. You've been in your role for not quite a year now. What are your initial observations?
Thanks, Kath, and good morning, everyone. Look, I spent the past 13 years creating and managing e-commerce operations in Mercado Libre in the region in South America. When I was there, I was always jealous of Walmart's assortment, footprint, and logistics.
Now that I have the chance to lead the company and develop and work on our strategy of winning discount, leading omni, and becoming the ecosystem of choice, it gave us, and we have all the tools to keep disrupting retail. This past year has been amazing, has been transformative, and we are keep pushing our strategy.
That's awesome. Thank you. Christina, I think we have a couple of pictures that kind of give some insight into what's going on in Sam's Club in Mexico, sorry, in China. Tell me, what makes Sam's Club so special in China?
Sure, Kath. Good morning, everyone. These pictures, they offer a pretty good snapshot of kind of energy we see at our clubs every day. Actually, we're incredibly proud of the growth we're experiencing in Sam's Club in China.
Actually, in our latest Chinese New Year trading season, we actually saw our membership count grew by another 35%. Yes, our clubs are indeed very busy. I think back in 2023, Doug mentioned that we have two clubs in China that each generated about $500,000,000 sales per annum. I'm really happy to share that this year, we think the number will jump to eight. We'll have eight Sam's Clubs in China this year that would each generate more than $500,000,000 sales.
That's extraordinary.
Thanks, Kath. You asked me the question, right? Why do members love us? I think it really comes down to three key things. First, always it's great items. When members come to our Sam's Club, they know they can get quality products at great prices, and they know that they can always count on that.
It is more than that. There is that huge element of discovery, of treasure hunt. They can find unique items that are only available in Sam's Club. Life is truly better with Sam's Club. They know that we aim not just to match the expectation, but really to exceed them and delight them. I think second really is the omnichannel convenience, right? Members today, they can shop with us whenever, wherever, and however they want to. It could be a fun outing with families and friends in our clubs, sampling good products and discovering hidden gems, or they can simply take out their phone, click on items, and have them delivered to their doorstep within an hour. Actually, average speed is less than 40 minutes, and sometimes it could be as fast as 15-20 minutes.
More than this year, more than 50% of our sales actually will come online. More than 80% will be delivered within that one-hour window. The third thing, though, I think is the most important, and you said it, Kath, earlier, really is about trust. Our members, they trust us. They trust that when they come to Sam's Club, they can get quality products at great prices. They trust that we're constantly working to improve the shopping experience with us. They also trust that we truly get them. We invest, excuse me, a tremendous amount of energy and time really to study their needs and trying to get the insights, but also foresights to anticipate their heart's desire so we can delight them not only now, but also in the future.
Yeah, that's great. I think what we have seen across international is trust is universal.
It's so important in retail. Kalyan, switching to you, tell us a little bit about the consumer in India. What are they expecting from us? How are you delighting them and exceeding their expectations?
Sure. Thank you for inviting me, Kath. At Flipkart in India, we have more than 500 million users. We have a product catalog size of more than 200 million products, which we offer to these 500 million plus users. We deliver to roughly 95% of the country, maybe more than 22,000-23,000 zip codes across the country. These 500 million users are among the most diverse users you can find: diversity in language, in education, in income segments, geographic diversity. The most important aspiration and ambition for Flipkart is to make sure that we understand these customer segments carefully and we are able to offer a customized value proposition to each of these segments.
For example, the top 30-40 cities in India and the affluent customers within them, they behave in a particular manner. They expect the meaning of value proposition for them is speed of delivery, service, convenience, and national brands. As you go down, let's say you look at the next 300 million users, for them, the meaning of value proposition is selection, variety of products, and value. How do we offer that value proposition to this user segment? This is the meaning of customer experience in India, and this is our aspiration.
Yeah, that's fantastic. It kind of blows your mind when you start to think about the scale of that, 500 million active customers. I love the way we actually have the opportunity also to learn from each other.
I think there's a great example that has played out even over the last 12 months. Kalyan, you were looking at kind of how to engage with Quick Commerce, and I know you engage with Christina. Why don't we start with you, Christina? Why don't you talk a little bit about your clouds business, and then we'll go from there and understand how that's playing out in India.
Sure. Clouds model is something we started experimenting before COVID. During COVID, as you know, the online demand really accelerated. The cloud model actually has proven to be a game changer for us. Now, clouds really are their small, compact fulfillment centers, dock stores, strategically located in dense urban residential areas.
Each of the clubs we call Mother Club, you would have about 8 to 15 clouds, and each cloud will serve a trading area of about 2 to 3 miles radius. What I really love about this model, though, it's actually its efficiency and its integration. The club and the clouds, they really work together as one seamless hub and spoke system. The club really is a hub in the center. It manages and replenishes all those clouds as spokes. Online orders, they actually are picked and packaged in our clouds, and from our clouds, delivered to our customers via motorbike for speed, right? When we actually say more than 50% of sales this year will come from online, it really means that with this model, we actually get to sweat our club assets twice. Now, what do we mean by that?
Think of it this way. If you remember the photos we showed earlier about those busy clubs, right? What you saw are busy clubs filled with customers. What you did not see, though, but it is actually happening at the same time, real time, is a massive online shopping operation taking place behind the scenes, powered mostly by our cloud network. Clouds are easy and low cost to set up, very simple to run. Which means that with actually relatively small additional CapEx, we can actually generate significant high returns of our club assets. That, Kath, really is the essence, what we say it is our club-based omnichannel.
I think that's how you've got to this highly efficient model where 50% of your business is online and 50% offline, and both channels are profitable, and you know how to now deliver in less than an hour, sometimes as fast as 15 minutes. Kalyan, you were interested in understanding about Quick Commerce. Do you want to just tell that story a little?
Yes, sure, of course. We launched our own Quick Commerce product and brand just about nine months back, what Christina calls us cloud. In India, we call it Quick Commerce. We launched with just about 100 stores, and we are already close to 300 stores now. By the end of this year, we probably get to 800 stores. That's the vision we have.
The customer segment, like I shared before, for this particular product is a very sophisticated customer with very high expectations. Now, the most important aspect of making this business successful is the supply chain behind this. The supply chain behind this has to be scalable, technology-enabled, agile, reliable. Christina's team were able to expose us to a lot of these supply chains in China where they have these fulfillment networks, which Christina explained, 750 sq ft all the way to 200,000 sq ft fulfillment centers. It's very, very impressive what we saw, and we are doing everything to learn from her more and more and execute that in India.
I want to call out that we're actually talking to his team now to learn ways that what he's doing in India so we can actually cut our delivery times even shorter as well.
Yeah, it's like an equation that we just keep refining in each market and context. Ignacio, you're keen to see how would this deploy in Mexico as well.
Yes, the beauty of our company and being present all over the world is it gives us a chance to look at the future. After we saw what China did and how Flipkart adapted that to the Indian market, now we are tailoring that into Mexico. We are a little bit different. We have more than 4,000 stores already in place in the region. That gives us a huge advantage because we are 10 minutes away from 90% of our population in the big cities. Leveraging that with the experience from both countries and what we are learning from both countries, it is helping us to reshape the customer offering we are doing.
Right now, we are delivering as fast as 45 minutes in the big cities, full basket size, but we want to take down to 30 and 15 minutes eventually, leve raging everything we're learning from other countries. This is amazing.
It's exciting, isn't it?
Yeah.
Let's talk about another way that we're looking at serving our customers. We talked before about how we're using AI for trend of products, but Kalyan, I know you're also in Flipkart doing things with AI. Can I start with you, and then maybe we work along and each of us can share what we've been doing around AI?
Sure. Kath, AI has to become the culture of the company. That's our vision. It should not be restricted to a team, a function, or a product.
On the business side, we have classified our product and engineering into three buckets: consumer-facing and consumer-facing, merchant-facing. We have more than a million merchants who list their products on Flipkart, and then our supply chain. Of course, there are the corporate functions where AI gets used. We are embracing it across all of these products. I will today give some examples about the consumer-facing function. The biggest opportunity and challenge also operating in a country with the diversity of India is personalization. How do you match the 200 million plus catalog size to the 500 million plus users? That is where we are today using AI in the biggest way. There is still work to do, but that is the biggest investment we are making. We have a group company, Myntra, which is a lifestyle marketplace. They are a bit ahead in this game.
For example, when you as a customer go in and you start looking for products, instead of just showing you products, they dynamically show you looks. You went in looking for products, but then you come out with a look. This is one big example. Another quick example, India is going through a very big generational movement. We have about 350 million-400 million users, young users, let's say in the age group of 15 to 30. These users behave a bit differently, and I'll tell you the primary difference. Mostly e-commerce platforms in the world, when you just look at the app or you look at the product pages, they are very text-heavy, image-heavy. These users want videos. We are using AI extensively to convert all of these catalogs into videos and giving sellers the tools to do that in a cost-effective way.
These are some of the big examples.
Right, yeah. Kalyan, sorry. Yeah.
In our case, of course, we're using and testing AI everywhere to look for productivity on improving service. Where I'm most excited about is now we are putting together in Mexico, we have Beneficios. That is a program that gives benefits to our customers for coming into our stores. That is giving us and feeding us a lot of information from what they buy, when they buy, how frequent they come to our stores. We're feeding that information into Sintila. Sintila is putting all this information after we process it with AI, with machine learning, into our suppliers. Now suppliers with all of this information are taking much better commercial decisions and are understanding much better the new trends or how customers are reacting. That's one example.
Another one we just launched a couple of weeks ago, a redefined AI-based recommendation engine inside our webpage. The numbers we're seeing are incredible. We saw 45% more engagement, 2.4 percentage points more of, sorry, 2.4% more of add to cart. This is just the beginning, the first initial test. If we can extrapolate that to the rest of the experience, it's going to be a game changer.
Fantastic. Christina?
Sure. One example I can share is actually how we transform the line review process with AI. Previously, with each category line review, it would take about two to three merchants three weeks of full-time manually collecting data and performing analysis. Now, our AI-powered tools have completely automated all of that. That really condensed the workload from three people, three weeks, down to one person a day.
Now, that's a tremendous lift on productivity, but not all in that. It really improves the decision quality. Most importantly, it frees up valuable time for our associates to focus on truly important things.
That's great. I love your point, Kalyan, too, that it's not an initiative or a side project, but it's actually immersive. It's the whole company engaging in this. We have monthly gatherings of all of our market presidents, and we've made a big effort to hold those not in Bentonville, but in our markets around the globe because I think being in a market helps all of us learn from each other and solve problems together. One thing that we've all learned is that our customers everywhere have the same wants. They want great items at low prices. They want a broad assortment.
They want a good experience, and they want to shop when it's convenient for them. They want to spend their money with a company that they trust. Ignacio, I'm going to start with you on this. How are you managing this nexus of value, proposition, and convenience?
Yeah, so when I was telling at the beginning the strategy, we're focusing on our core. One of the things we're doing is building an ecosystem that connects with our core and drives traffic to the stores. This ecosystem started because when we wanted to start our omnichannel experience, we realized that in Mexico, customers were not able to access internet through their phones because it was very expensive. What we did is we created Byte, that is our MBNO service that now has more than 19 million subscribers. Why we managed to do this?
Basically because we launched this service at one seventh of the cost of the leading player. When you start giving access to internet to the customers, suddenly they realize and they have access to the digital economy. Now they can buy items through online. They can have access to digital doctors or digital consultations. They can ask for a credit online. They can pay online. They can do a whole new amount of things. This is the ecosystem we are building with the stores at the center and giving them access to the digital economy to help them save money and, of course, live better.
That's extraordinary. 19 million customers are getting their digital connectivity from you at a seventh of the price of what they could get from anywhere else.
Yes, that's why we become the third largest telephone company in the country in just four years. Because they have access to the digital economy now, for example, they can subscribe to Benefits. With Benefits, in six months, we got 46 million subscribers. This is all information that then we can put into Scintilla and get the...
So that data network is building out. You know your customer. You understand their transaction history. You are providing value for them in multiple ways in this connected way to build omni.
Exactly.
Tha t's awesome. Excellent. What about you, Kalyan, as you think about convenience and value?
Yeah, it's probably the most sophisticated and complex problem in commerce and in e-commerce as well. How do you balance and trade off the two?
Given the diversity of the user base we have, we have taken a philosophical view that we will lead with the value proposition, and the other one will be hygiene. For example, like I mentioned before, the top 50 cities and the more affluent user base, we lead with speed, service, convenience, and national brands. Broadly, value and selection, we make sure we have hygiene. The moment you come down to the next customer segment, we lead with selection and value, and we make sure that speed and speed-related service becomes hygiene. We believe the trade-off is a little bit tricky, and we have to lead with one and offer hygiene on the other one.
Any last comments from you, Christina?
Sure. We like our CVP, and we like our store-based omni-channel. We're seeing it going from strength to strength.
We're also very, very clear with all our associates that complacency is never an option. Right? I think really for me, it really comes down to trust. The trust needs to be built over time through a relentless focus on customers. And Sam Walton once said, "There's only one boss, the customer." I think that really is a key. A relentless focus on customer, constant innovation, reinvent ourselves so we can delight them.
I hope what you've heard today is like, firstly, we are in the right markets. Between these three different countries represented here, there's 3 billion people in population size. We are in the right markets. We have a strong and growing omni-business, and we're executing with speed and at scale. We also have great talent. Thank you, Christina, Ignacio, and Kalyan.
I really appreciate you coming here and sharing your insights about what you're seeing in the market. I'd love to take everyone with us to Mexico, China, and India, but this is the best that we could do today. At the heart of everything we've discussed today is our purpose as a company. We help people save money and live better. How we do that is going to continue to evolve as innovations emerge. That purpose is our North Star everywhere we operate. Doug showed you our positioning statement earlier today. As retail goes through what promises to be the biggest technological transformation yet, I want to key in on this phrase in our statement. We are people-led and tech-powered. There is so much strength in that phrase and in the way that it is constructed. It matters that people come first.
Walmart is and always will be about the people, the customers and members we serve and our associates. Underpinning and uplifting everything we do, whether it's delivering in 15 minutes or selling individual bananas in our stores, are our people. Because we're people-led, it comes natural to us to be customer-focused. People-led, tech-powered. That's Walmart International in four words. Thank you again for your interest in what we do. I think we're now going to go to a short break. Thank you.
Sam Walton started Sam's Club in 1983. It was, in his words, an experiment. We had no idea whether the idea would fly or the philosophy and approach would work or not. It was a big experiment. Can we do it? Can we do it? Over 40 years later, that experiment is still going strong with a solid and timeless foundation.
Brands at a value members love. Members Mark leading the way in innovation, new flavors, unique general merchandise, sustainable sourcing and packaging, and plenty more. An unmatched experience. Scan and go. Seamless exit. Curbside pickup. Delivery from club. What competitors can't do, even on a small scale, Sam's Club is doing across its digital platforms and 600 clubs nationwide. Sam's Club leverages the technology and systems of the world's largest retailer, Walmart, while cultivating its own experience that keeps members coming back week after week and renewing year after year. What makes all of this possible? Our greatest differentiator is our people. We are 100,000 associates all working together, powered by best-in-class technology to deliver the most seamless connected experiences possible for our members. Just like Sam did back in 1983 with this experiment he called Sam's Club, we are reimagining retail once again. [audio distortion].
Good morning. Good morning. Forty-two years ago, we launched Sam's Club. What started as an experiment has grown to a $90 billion business. It feels like we're just getting started. That pioneering spirit is the essence of who we are, and it's propelled us to set out a really ambitious future to be the world's best club retailer. Here's what you're going to hear from us today. We will redefine the future of the club channel and what it looks like. That future is omni. We will define the success by membership growth, how many new members we acquire, and how loyal they are to us. Over the last several years, we've delivered strong growth, and we have a solid foundation. Our members are telling us they want us to do more and to go faster. We've learned, we've listened, and we've adjusted the value proposition.
We've sharpened our focus, and we've begun the work to leverage the enterprise and to move faster, all of which has created the conditions for aggressive growth, growth that increases the returns to Walmart. Over the next 8 to 10 years, we will see a route to doubling our membership. As a result, more than doubling sales and profit. With our omnichannel approach and the growth of our digital businesses, we believe we can do it even faster. As we redefine the future of the club channel, we've set a new bar for what members expect. Let's talk about what they've begun to see change. We opened our first new club since 2017, showcasing the future of Sam's Club at Grapevine. Scan and Go is now broadly adopted with Grapevine at 100%.
Just Go AI Computer Vision Exit scaled from zero to the whole fleet in less than a year. We are growing through digital. Our new e-comm value proposition, which offers free shipping to Plus members and free pickup to club members, has proved to be popular and has enabled us to grow faster whilst also enhancing profitability. Personalized connected ads leveraging AI are now a reality. Our Members Mark private brand represents 50% of our merchandise sales growth in the last two years. We have invested in associates, including compensation and AI tools to improve efficiency. That has resulted in more associates choosing to stay longer and build their careers with us. We have a world-class leadership team with the experience and the ability to turn our strategy into a reality.
Members are thanking us with all-time highs in membership and renewals, including a nearly 700 basis point increase in first-year renewals, all-time highs in digital penetration. We can have a digital relationship with 100% of our members through digital membership cards. E-comm is growing aggressively. It accounts for 15% of sales today, excluding fuel, and we think 40% is achievable over the planning horizon. Growth in delivery with Express is the tip of the spear, and it has grown triple digits. Our advertising business has seen compound growth of 13% over the last two years. Members Mark continues to be a driver of renewal, with units growing 2.4% faster than our national brands. Experiences like Scan and Go have become a top reason to join Sam's Club and to renew.
Younger generations are shopping with us, which is a really important health metric for the future of our business. We have a lot of opportunity ahead of us, and we have a plan to deliver on it. The club total addressable market is large, and it is growing rapidly as more people see the value the club channel offers. Our share of sales and of membership is unlocked at an even faster rate through a national e-commerce business. As we continue to listen to our members, we've learned that the key to winning is to give them more of what they want, how they want it, when they want it. We are not interested in asking the member to tolerate friction as a cost of doing shopping with us.
We are able to have an end strategy enabled by us leveraging Walmart's back-end capabilities and by reinvesting in the member value proposition to drive more members and more loyalty. Let's get into the member value proposition. It's evolved. All of the decisions around the changes and the investments we are making are framed by how they enrich the four components of value, assortment, experience, and trust. Let's start with what's table stakes, profoundly important to the club channel: value and assortment. Value is price, and quality is a key component of perceived value. We've invested in quality over the last few years, and it really comes to life through our growing Members Mark brand. We continue to deliver more value to members by investing in price. Our merchants battle every single day to keep prices down.
Staying true to the model, they work to find the highest quality, all whilst maintaining the absolutely lowest price. Take Members Mark bath towels, for example. They're priced lower than pre-COVID without sacrificing quality, and units are up over 35%. Our growing advertising business and other high-margin businesses like our services business will be reinvested back into the member value proposition. Our rapidly growing e-commerce business is a natural advantage, and we will grow it profitably. Since our prices are the same online as in clubs, never marked up. As we grow, we extend our price advantage. On assortment, we're accelerating our efforts here, both in club and online, with world-class national brands, regionally relevant items to make us more of a club of the community, and Members Mark, which continues to serve as the highest bar for quality, value, and innovation.
Julie Barber, our new Chief Merchant, is a lifelong business and brand builder, and most recently ran US general merchandise, which is nearly a $100 billion business. You'll hear more from her today about how we're elevating our general merchandise offering. Over the years, the club model has evolved. Quality items at the lowest cost came at the expense of something: experience. We don't believe it's an either/or. As Doug said, we are an and company. It's why we've been on a journey to transform our business model to deliver a retail experience that is free of friction and frustration, one that elevates the members' life by anticipating what they need and giving them more than they expected. This starts with investing in our physical footprint. We are expanding our reach through new clubs and remodels with an eye towards omni engagement and speed.
On new clubs, we will open the 30 new clubs that we've shared previously, and I'm excited to share that we have plans to build a pipeline to 15 new clubs every year for the foreseeable future. On remodels, we will remodel our entire fleet. Revitalizing our fleet is a strategic growth investment, and we are confident in the returns we will see in sales and in membership income. On the club of the future, for those of you that are here today in person, you'll see what our revitalized fleet will look like. Starting with Grapevine, which sets the standard, we will remodel our fleet to this standard. Our members are telling us they want it, and we're moving with speed to deliver for them. To do that, we are leveraging enterprise platforms, including Walmart's fulfillment network and tech stack.
These capabilities allow us to have a national e-commerce presence and grow membership that's not necessarily tethered to a local club. We're not limited by our physicality. We're enabled by it. Tom Ward, our new End-to-End Chief Operating Officer, will share more about how we're going to lead in omni. Our journey from here is to create a connected ecosystem of experiences, whether someone's in the club, at home, somewhere in between. We're blending physical and digital worlds. We're connecting with members and becoming part of their lives in new ways. Diana Marshall, in her new role as Chief Experience Officer, will take you through how we see this stretching across our entire ecosystem, creating seamless connected experiences across every member touchpoint. Finally, trust. One important component of trust is the output of successfully executing all of the elements of our member value proposition.
It matters more in the club model than anywhere else because members pay to shop with us. They need to trust us upfront that they're going to get a return on that investment. This all starts with our associates and the trust that they place in us, creating good jobs that lead to good careers. Part of the journey to be the world's best club retailer means we'll need to have the best associate experience in retail. We've already taken steps to elevate wages. We've implemented pay progression, and we've reduced turnover. We're excited to do a lot more. We're using AI to remove mundane work from the club. We've taken 100 million tasks out of the club in the last year alone.
This drives better experience for our associates and frees them up to focus on more complex work and to engage in more meaningful ways with our members. We know that when a member has a positive interaction with an associate, they are more likely to renew. You will see continued focus here, as well as our commitment in fostering trust with members, suppliers, and the communities in which we operate. As member trust builds, it becomes a reinforcing loop that both grows membership and spend. Our member value proposition is resonating. We have momentum. We are confident in the future of Sam's Club, and we are creating shareholder value by strengthening our business model. With the seasoned leadership team that we have assembled, we have the experience to do more and to go faster. I'm really excited for you to hear more from these leaders today.
This is the team with the experience to accelerate our strategy and to reimagine the future of retail. [audio distortion].
Good morning. I'm Julie Barber, and I am thrilled to join Sam's Club. What's really exciting is the wide range of assortment that we offer, from fresh fruits and vegetables to the most recognizable brands in general merchandise. We have an amazing team of merchants who are experts in their fields, and we strongly believe in omni. Our merchants aren't just buying items for our in-club experience, but also online. We lead the way in offering great value to our members by providing price parity. No matter how you shop at Sam's Club, you pay the same price. That means the larger our e-commerce business grows, the greater our price advantage. What stands out to me as a differentiator is our fresh assortment.
This has been an important category for Sam's Club, with almost 90% of members currently shopping it. We know fresh continues to be a membership driver. For my family, home meal solutions are a top item. Right now, Sam's Club offers 30 prepared meal options, and we are always pulsing our members on what they would like to see next. We believe our private brand, Members Mark, sets the standard in our clubs for quality through disruptive value and on-trend innovation for items across all of our categories. I am really excited to share that by this summer, all of our Members Mark items will be free from artificial colors and ingredients, which we know is important to many of our members. I am really proud of Members Mark and how they are leaning in for our Better For You initiative.
We have items like Members Mark organic fruit twist made with real fruit and no artificial colors or flavors. The Members Mark apparel sandwash collection is made with 50% recyclable materials. We will continue to utilize Members Mark, but also expand our other options with national brands like Poppy, a Better For You soda, and Simply Fuel protein balls made with real ingredients and probiotics. Our goal is to truly be a club of the community, providing members with items specific to their region's wants and needs. In March, we rolled out Club of the Community, and we added region-specific items like Franklin's original barbecue sauce and El Patio corn chips. Both of these items were found during our local open call event for suppliers, which we hosted right here in Texas. I believe it's important to improve our credibility with members through general merchandise.
We will accomplish this by partnering with big brands that our members recognize and love, like Vitamix, Jira, or Barefoot Dreams, to consistently surprise and delight them. By enhancing the assortment in our clubs and on our site, we can show up in the best way at every touchpoint of a member's shopping journey. It all starts with having great items. Now I'll turn it over to Tom Ward, our End-to-End Chief Operating Officer, who will share more on how we will bring all of this assortment to life in clubs and online.
Hey, thanks, Julie. You know, at Sam's Club, we talk about doing more and going faster. That's exactly aligned to what our members expect of us. Chris talks about the incredible strategy we have and our ambition to double the size of our business and our membership base.
I have the privilege of holding a newly created position at Sam's that's been designed with one simple thing in mind: to achieve those two goals quickly. My team's responsible for building a seamless connection between our end-to-end supply chain, our clubs, our e-commerce business, and last-mile delivery to members. We'll do that through rapid acceleration and leverage of our world-class enterprise platforms. These include both our supply chain, as many of you in the room had the chance to tour yesterday, and by leveraging our e-commerce and last-mile capabilities, what we internally call the Walmart Commerce platforms, and something that I was fortunate enough to work on over the last few years while leading the U.S. e-commerce business. These platforms were and continue to be transformational in the speed and quality of service our members and customers receive.
The great news is at Sam's, we have the exact same to-do list. Bringing this formula together in a way which removes friction for members and associates, creates incredible clubs to shop in, and offers seamless online connection to our rapidly expanding suite of capabilities underlines Sam's Club as the only truly omnichannel club retail. We know that members want to shop at Sam's Club. What we mean by that is that they don't differentiate between physical clubs and our website or app, but rather they want to shop seamlessly between all our channels, however and whenever they want. We're designing an anytime, anywhere club model that appeals to the fastest growing generation of digitally native consumers, which is why we've seen around half of our new member growth coming from Gen Zs and millennials.
That means that members who are loading up flatbeds with great items on their weekend stock-up trips and they're walking in to grab something for dinner tonight, like maybe a convenient meal solution like lobster mac and cheese or some great Members Mark wine. They are also placing online orders for pickup and they're express ordering items for delivery. Our members are finding more ways to tap their membership for more things more often. That is the power of omni. Our members are already embracing this omni model. In fact, right now, about 40% of our in-club shoppers have visited our app or site a week before making a purchase. Innovative technologies like Scan and Go act as the connective tissue between the online and the physical world, and our members love it.
Go is a win for members because it simplifies their shopping experience, allowing them to bypass the traditional checkout lanes. It is also a distinctive competitive advantage. We can personalize the shopping experience while they're physically in the club. Who else can do that? What is even more exciting is that when members shop Scan and Go, they're twice as likely to then shop online with us. Just like you would have heard me say in my previous role, the nearest club is the one in our members' pocket. That club plays a truly central role to the e-commerce experience at Sam's, with over half of our e-commerce sales being fulfilled from clubs today. When it comes to speed and convenience, members love to use our club pickup offering. That channel is growing rapidly, up 21% last year.
You know, sometimes members just want the convenience of having the items they love delivered right to them. As we activate and expand delivery from club, we're seeing tremendous growth, up nearly 130% last quarter. When it comes to speed, members are loving our express delivery proposition, which has more than doubled in sales since we launched it in August of last year. To wrap things up, I'm going to leave you with a few points that have had me really excited since joining Sam's. Our members who are digitally engaged shop with us three times more often than members who shop in-club only. They shop across twice as many categories, driving three times the overall spend. Those same members, they renew at a 10% higher rate than in-club only members, meaning they're getting more value out of their membership at Sam's.
This ecosystem, fueled by omnichannel, helps us grow membership, and it drives renewal. We are excited about the opportunities ahead as we accelerate our omniclub ambitions. Our members are asking us to do more and to go faster, all through seamless connected experiences. That is exactly what you're going to see. To share more about how we're creating these connected experiences for our members, I want to turn it over to Diana Marshall.
Thanks, Tom. I'm excited to be the first Chief Experience Officer in the enterprise. As we look to the future, we know value and assortment will not be enough. As famously said, what got us here won't get us there. We've learned that connection is at the heart of every shopping journey, giving us confidence that experience will be a key differentiator for Sam's Club going forward.
Our vision is simple: to create effortless personal experiences for our members that bring joy and foster community. Our ability to design end-to-end experiences powered by technology and leveraging our data will supercharge the member value proposition and increase our total addressable market, driving the growth needed to achieve our ambition. For example, Scan and Go, our digital in-club shopping tool, has a net promoter score over 90. Today, three quarters of our members leave the club without stopping in line through our Just Go exit technology. They receive a simple thank you and a smile. This technology has increased member satisfaction at exit in a matter of months, and it also earned us the IFF Design Award for excellence in design. Experiences like these are part of the reason that Sam's Club achieved the top spot in this year's American Customer Satisfaction Index rankings for general merchandise retailers.
As we look ahead, we want to go beyond effortless and elevate personal experiences that bring joy and foster community. Our data will enable personal experiences that no one else can replicate. We will create dynamic, real-time connections with members based on their preferences, like shopping habits and even birthdays, driving genuine and thoughtful interactions. This will deliver tailored, authentic marketing to potential and lapsed members, giving them a reason to return or join for the first time. A deeper engagement with our members will fuel our advertising business, enabling us to reinvest in the member value proposition. Let me give you some examples of how this might come to life across various member journeys. Jordan is hosting the in-laws for the holidays. I can certainly relate to that pressure.
As she's scrolling social media for inspiration, she spots a local creator raving about Sam's Club holiday must-haves: a beautifully decorated table, gourmet spread, and high-end cookware. A Sam's ad for a KitchenAid mixer pops up, reinforcing the message. Inspired by great prices, Jordan clicks, and after exploring top holiday cookware picks and using express delivery benefits to get her items fast, she joins Sam's Club as a plus member. Sam solved that pressure that only the holidays can bring. Charles is a member who loves gas savings and fresh meat, both poultry and seafood. While fueling up at Sam's Club, he receives an in-app message suggesting he might like the Ninja Air Fryer XL on demo inside the club today. Charles is having people over to watch March Madness, so he goes inside and purchases the air fryer and some wings using Scan and Go.
Before swiping right to check out, he receives a pop-up reminder to buy Reynolds Wrap Foil, which he was definitely going to forget again. What started as a weekly fuel-up turned into the makings of a great Final Four watch party. Sarah moved to a new town and fell out of her normal shopping routine with Sam's Club. She receives an in-app notification featuring personalized product recommendations, which leads her to explore new items and brands on the site, in addition to seeing her regular favorites that she's been missing. She locates the Sam's Club in her new town and places a pickup order. Following that experience, she receives a geo-located notification to learn more about an upcoming cooking event happening in the club. The experience makes her feel more connected to her new community, and Sam's is now part of her routine again.
Members use our platform in so many different ways, and we meet them where they are on their journeys. That is the power of personalization at scale. All of this is powered by AI. As Chris shared earlier, we've already leveraged AI to eliminate 100 million tasks for our associates, freeing up time for them to focus on member interactions along with our member innovation. This is just the start. At the heart of everything we do, we are here to create experiences that truly matter, both for our members and our associates. Our success is not just measured by what we build, but how we make people feel. We can shape something truly remarkable. We will lead with empathy, innovate with purpose, and deliver experiences that have a lasting impact. With that, I will turn it over to Todd Sears, our Chief Financial Officer. Thanks, Diana.
As you've just heard from my colleagues at Sam's Club, innovation is at our core. We're constantly evolving, even transforming. This has resulted in a strong business today that has momentum and is poised for continued growth. We still have a simple model, though. That model puts the member first. They are at the center of our member value proposition. That matters for our financial performance. Sam Walton described the financial model for Sam's Club as this: very low gross margins with a corresponding low expense structure and very low prices. The profit margin percentage will also be low, but hopefully we'll have high volume sales, 12-16 turns a year in inventory, and an excellent return on investments. The model was designed to keep prices so low that we just barely cover our expenses and other investments we choose to make in the member value proposition.
The model holds true today. We do have high sales, but we also have a low margin. We have an ROI that is accretive to Walmart. All of that is possible because 80-90% of our profit comes from membership income, which is a high-value, highly predictable annuity stream. That results in a business model that is a self-reinforcing virtuous cycle. By continuously reinvesting in the member value proposition, we are reinvesting in what matters most: the member. That, in turn, over time results in more membership income. You've heard already that our membership base is healthy. Membership is at an all-time high. Membership income has grown 22% over the last two years. Renewal rates are strong. Tenure renewal rates are above 90%. More than half of our members are plus members. Those are great data points.
What gives me the most optimism are several leading indicators we see within our membership base. Put simply, we are aging younger. The first digitally native generations, Gen Z and Millennials, are about half of our new members. More than 50% of our members transact digitally, either through Scan and Go, shopping online, or both. That means that over 40% of our total transactions are digital. Each of these trends points to continued membership momentum. Growing membership is how we grow our P&L. Our current membership base gives me a lot of confidence about what lies ahead, especially as the total addressable market in the club channel is already large and continues to grow. Chris said earlier that we see a path to doubling membership in the next 8-10 years. I'll highlight three ways that we will do that.
First, in recent years, we have grown membership organically by delivering on and executing on our member value proposition, investing in value, in assortment, in experience. Going forward, we will continue to grow membership organically. Remodeling all of our clubs is going to be a big part of that. Second, though, we will further grow membership by building new clubs, which helps us expand our physical reach. Lastly, we will also expand our digital reach and continue to grow membership by continuing to grow e-commerce. We believe that the future of club retail is omni. We are investing in that future with confidence. On this last point, that is where being part of Walmart allows us to do things that only we can do.
Because we're a part of Walmart, we do not have the same fixed cost burden or the long development lead time that we would have as a standalone operator. We're using the same tech platforms like the Walmart Commerce platforms for our e-commerce app. We're utilizing the Spark Driver network for deliveries, including for express. As you've heard, we're merging supply chains with Walmart U.S. That will help us enable two-day shipping nationwide for most items over time, even in places where we do not have clubs, which means that not all members will have to live near a physical club. As we execute our strategy, we will continue to have healthy, sustainable membership growth. Sam's Club is uniquely positioned at this point in time. We have a strong business with good momentum in a growing channel. We are poised for continued growth. Back to you, Chris.
Thanks, Todd.
As you've heard from the team, our member value proposition is resonating. We have momentum. We have sustainable growth in membership. It's powered by our physical fleet and e-commerce. The investments we're making deliver experiences that are not common in the club channel. We're creating shareholder value by strengthening our business model. The leadership team we've assembled, they're ready to go. We have the experience to do more and to go faster. We're reimagining the future of retail. We're leveraging the collective power of our 100,000 brilliant associates. The work they do every day to serve our members makes all the difference. That makes us confident in the future of Sam's Club. Thank you. Now I'd like to bring John Furner onto the stage.
Thanks, Chris. Yesterday, I talked to you about how our supply chain has changed.
Now today, we're going to cover the entire U.S. business. I think the takeaway is, even as a business that's grown $121 billion in sales the last five years, we have more room to grow. We have a great plan to accomplish that. Today, we have a large majority of the country shopping with us in some form. They're impressed with what they're seeing, both with the breadth of the merchandise and the quality of the merchandise. In particular, excited about the omni solutions that we offer. The speed we're able to deliver is really important. We'll soon be able to deliver to about 95% of U.S. households in just under three hours. Our goal is to build on that base and become America's favorite place to shop. Our strategy to accomplish this is our customer value proposition.
It is really the four things that matter that customers care about. That is price, assortment, experience, and building trust. I will talk through each of those. Latrice Watkins is going to come up and talk about assortment, our merchandise focus on the customer, and the way that we want to deliver whatever they want, however they want to shop. We can become their favorite. We can grow by adding more brands and items on top of the reliable base that we have already built. Dave Guggina is going to come up and talk about e-commerce. He now leads e-commerce. He will go into detail about experience and, in particular, omni and fast delivery. We expect e-commerce to account for 60% of our sales growth in Walmart U.S. the next five years. Make no mistake, omni is the goal.
We have built a model where we can have no preference between e-commerce and stores. That is for the customer to decide, not for us. We expect, as you heard earlier, to achieve profitability in both places. I will have a conversation with Seth Dallaire about our growth strategy and growth businesses, including Walmart Plus and Walmart Connect. John David talked about the growing percentages of our profits that are coming from MIX. This is an exciting change for us, in particular, those of us who have been around a while, because it means that our business is stronger. These are changes that can be sustained, that help us invest in price, associate wages, new jobs, and new technologies. We can grow operating profits faster than sales, and we can create shareholder value. I want to start with price. Price is in our DNA.
Everyday low price, it's part of our DNA. We believe we play an important role in society to keep prices low. A great example is the holiday basket program, where year after year, we've offered the big meal without inflation. We're offering the entire Easter meal this year for less than $6 a person, which compares to last year at $8 a person. We've had a lot of success with our rollbacks. Today, we have 5,500 rollbacks. Walmart Plus, it's very related to price. It comes out to about $2 per week for free deliveries. With all the benefits that you can get in Walmart Plus, you can save enough money just on the fuel benefit to pay for the entire membership. Everyday low prices are enabled by everyday low cost. It's a significant enabler of everyday low price.
The supply chain that you saw yesterday, when we operate it with a consistent flow of goods, consolidated orders, and few fluctuations, that helps drive this. Many of you got to visit our facilities yesterday, and you've seen the progress that we're making with automation. More than half of our e-commerce deliveries are flowing through our automated centers. Our unit cost averages in the next generation FCs are more than 20% lower than a year ago, or more than manual buildings. By the end of this year, we expect that improvement to improve to over 30% from where they were. About half of our distribution centers are in the process of some kind of automation retrofit. What's exciting is that more than half of our stores will be receiving some kind of inventory and freight from automated distribution centers. Automation, it helps our business.
It helps our customers. It helps reduce our physical labor that our associates go through. We have new roles emerging. They're less manual. They're better designed to serve customers, and they pay more. As I said, Latrice will talk about assortment, how we'll continue to broaden what we sell in our first and third-party e-commerce businesses, and how we'll increase engagement with priority new brands. Some of that progress has been unlocked by search data. For an example, our teams saw that Hill's Dog Food was one of those most searched-for brands that we didn't carry. It was a brand some people would say, "I buy everything at Walmart except for that." Now we offer Hill's online, and it's performing well.
With private brands, we have 21 private brands that do over $1 billion in sales, and five of those brands do over $5 billion in sales. They make up for about 40% of our general merchandise sales. The quality we're offering is fantastic, and it's helping us reach key customer groups. I also love how Marketplace is growing, and it's serving as a gateway to Walmart. I recently talked to the CEO of Arctic Outdoors about this. They were a digitally native brand that first joined Walmart in the Marketplace. That led to more sales, more customers, and now they're in both stores and Marketplace. The two channels perfectly complement each other with inventory and color options. Erica Cole's life changed forever in college when she lost her leg in a car accident.
After not finding clothes to fit over her prosthetic leg, she started an adaptive clothing company called No Limits. She became a seller in our Marketplace. We are proud to empower small businesses, and Marketplace is a perfect place to do that. As you listen to Latrice talking about the work on brands and general merchandise, recognize that it goes on top of a very strong base and something that we have already accomplished that is very hard. We are the largest grocer in America. We have frequent customers who rely on us for their fresh food and consumables, and we built a scale business to deliver those. We just added pharmacy delivery in 49 states. It had been the number one service requested by customers who identify as time-sensitive, busy families.
We are the first to integrate grocery, pharmacy, and general merchandise in a single order online that can be delivered in under an hour, and our customers love it. We like to say we want to be the place for everything people need and everything they want. We say it in that order for a reason. When you think of the things that people need, think of food, consumables, prescriptions, and then those things that they want. They can be increasingly put on top of the healthy and predictable base that we already have. There is also a good story with our merchants using AI. Wally. Wally is a new tool that our team built that helps our merchants analyze data, answer how-to questions, and produce actionable business insights.
They are using AI for demand planning and predicting future buying activity and refining the descriptions of our items in our catalog. In experience, I mentioned Dave will go deeper into omni experience and, in particular, fast delivery. Walmart Plus is a really important part of that experience. Plus members make up about 90% of our from-store delivery volume. They are grateful we maintain EDLP even when delivered. That is something that we hear a lot. We hear people say things like, "I love that you deliver fast and you don't jack up the price like other people do." About a third of our store-fulfilled orders are delivered with fast delivery, meaning the customer is paying $5 to get it in less than three hours or $10 for about an hour. For special events, we have seen higher percentages on fast delivery.
I'll give you one example. On Christmas Eve, 77% of our orders from store were with fast delivery. These services, they have some of our highest NPS ratings that we see. They just show how people are not only prioritizing their money, they're prioritizing their time. We see this as a key capability that's an advantage even for those that can deliver same day. Same day might be a four-hour window some point later today. With us, it's increasingly within the hour, full stop, at everyday low price. Now, as we said yesterday, density, last-mile delivery, that's all contributing to profitability in e-commerce. We find that the faster we deliver, the more customers come back. Talking about speed, drone delivery continues to be popular with customers who've tried it. We've done about 120,000 deliveries so far.
The Dallas-Fort Worth market is one of our test markets. Based on the results we see, we plan to keep expanding. Make no mistake, the number one reason we are so well positioned on experience is our stores. With Supercenters, we have an incredibly strong curated assortment with 120,000 items sitting within a few miles of most Americans. It is connected to an e-commerce marketplace with hundreds of millions of more items. At times, we like to think about this question. If Walmart could start from scratch, what would we keep and what would we change? When it comes to having 4,600 stores, the answer is absolutely we would keep them. Stores are the hubs of our business. They are our advantage with omni. Not just with pickup and delivery, but with services like auto care, pet services, vaccines, the pharmacy.
Our stores continue to see strong in-person traffic even as we grow e-commerce. We will continue to invest in our store experiences. We are averaging about 650 remodels a year. We used to call our remodel the store of the future, but now that we have over 800, we are just calling it a remodel. We typically see a strong sales comp lift in years one and two, including better experience scores and more online pickup and delivery. We are so confident in our stores, we are rebuilding our new store pipeline. We will open about a dozen new stores this year, and the next is in Cypress, Texas, on April 30th. Part of what is helping us advance our experience for both our customers and our associates, you have heard it all morning, is AI. We are using AI in stores, our supply chain, and the home office.
This is an example of a digital twin of the front end of a store. This is a simulation that takes into account how customers would behave, how the lines may back up, and this can help us adjust things so we can get it right. We can have an agent watching the weather, and it could send more shovels. It could send more sleds if there's snow coming. We can simulate a new modular and see how it would perform before we build it. It's exciting to think about all the possibilities with AI. Just a couple of months ago, we had our entire store leadership team together in Orlando, and we decided to dream about how big can we go. Imagine if we could simulate the entire customer experience from end to end and identify any point of friction.
Imagine if a customer could walk down the OTC aisle and the supplements that they need individually were highlighted. Imagine a car with no driver that comes to the store for a pickup order and then goes and checks itself in to the auto care center for a tire rotation. Imagine if we could keep customers in stock so seamlessly people would stop building pantries in their homes. We say imagine because our only limitation is our imagination. As new technology helps us make changes, it will help us empower our associates. It will help us deliver our purpose to help people save money and live better. No matter what changes, whatever changes out there, our purpose, our values, those will remain the same. Doug mentioned early this morning the awful situation with Hurricane Helene last fall. That one really struck me.
My dad worked at the company, and in the 1970s, we moved to Tennessee as Walmart was expanding east. We were there. We lived there when Walmart made its way into Appalachia. That made me even more committed to staying in Appalachia for the long term. It was a really special moment when we rebuilt and reopened the stores in Asheville and Boone just a few months ago, and we could show those communities how committed we are. All of that is the strategy to grow. As someone who's been at the company for 32 years, I can honestly say to all of you, I've never been more excited about the future. I feel we're well positioned.
We have the right value proposition, the right foundation, the right business model, and we can build on that now to become America's favorite, enable more growth, and deliver shareholder value. I'm going to turn it over to Latrice to talk about assortment, and then Dave's going to come up and talk about experience, and then I'll be back a few moments after that with Seth to talk about growth. Over to you, Latrice.
Thank you, John. Thanks, John. It's great to be here with you today to talk about my favorite topic, merchandise. Specifically, how we're aggressively growing our assortment, giving customers more of the brands they need, they want, and love, all while delivering value. I've been a merchant for more than half of my 25 years at Walmart.
As Chief Merchant, I think it's important that I tell you we have the best merchants, product developers, designers in retail. They care deeply about the customer, and they take immense pride in ensuring that we have the right items at the right price, at the right time. You should think of them as America's personal shoppers. Let's start with our owned inventory and how we assort our stores. Our stores are a unique competitive advantage. For years, we've talked about them being within 10 mi of 90% of U.S. households. John mentioned earlier, soon we'll be able to deliver to 95% of that U.S. population within three hours. This makes the store assortment even more important. That's why we stock it with 120,000 of the fastest moving items across food, consumables, general merchandise, and fashion.
Our merchants use data, tools, technology to select and strategically place each item to ensure that we have the right mix of merchandise for both in-store shoppers and those opting for pickup and delivery. There is our first-party assortment, which we own, and our third-party marketplace assortment on walmart.com, which we call our biggest store with unlimited shelf space. It is also the one that is closest to customers, the one that is always with them whenever they need it. Here we have hundreds of millions of items, including everything we have in stores, plus extensions of product lines, more brands, and unique finds. Last year alone, we added over 300 brands to our owned assortment and increased the number of marketplace sellers by 50%, and we have plans to have more growth this year. Having this assortment online is catering to customer shopping preferences, and they are responding overwhelmingly.
Take the Beautiful by Drew home collection. In stores, we have nearly 200 items and more than 600 items across stores and e-comm combined. Today, when customers purchase those items, 60% of what they buy from us is purchased online. Now, our marketplace is also resonating with customers. Here's why that's important to our business. First, it's elevating our profile as a digital shopping destination by adding in-demand brands that our customers are searching for, like La Roche-Posay, Omaha Steaks, and All-Clad. Second, it helps us to diversify the mix of customer baskets. In fact, more than two-thirds of our marketplace assortment is general merchandise. Third, it gives us access to inventory without ownership and enables us to monetize that inventory with Walmart Connect and Walmart Fulfillment Services.
Finally, it gives us an opportunity to capture data on customer responses to items that could be a good fit for our owned assortment. The benefit of having a store assortment, a 1P.com assortment, and a marketplace is that we uniquely give suppliers and sellers multiple ways to grow with us, like Arctic and No Limits, which you heard about earlier. As an everyday low-price retailer, it's in our DNA to provide products at a range of price points, including opening price points. We will protect our ability to do that with both national brands and our private brands. In fact, we have 90 total private brands, and you heard John say that 21 of them are million-dollar brands, billion-dollar brands, billion-dollar brands. Twenty-one are billion-dollar brands.
You can see some of them here, and you can interact with some of them over here to the right if you're in person. Our goal with private brands is to offer customers the same or better quality at a lower price. We're also working to modernize the brands across our portfolio. Take, for instance, our first food private brand in 20 years, Better Goods. Better Goods offers exciting flavors and culinary profiles that are uniquely crafted by Walmart product developers, like hot honey seasoning, pistachio nut butter, and salted caramel, oat milk, plant-based ice cream. These items are full of flavor and value, with 70% of them priced under $5. Customers love Better Goods so much they recently voted it the number one private brand for 2024. Modernizing our brands is not only about new brands.
It's also about refreshing our current ones, like No Boundaries, which originally was introduced in 1994. Prior to the relaunch last year, this $2 billion brand felt too much like a label. It had huge volume-driving items, but it lacked cohesion. Today, No Boundaries has a dedicated design team with years of experience in creating products for the Gen Z customer and has been transformed into a cohesive collection of on-trend items. No Boundaries, along with our elevated brand collections and Free Assembly and Scoop, have been highly additive to establishing Walmart as a fashion destination for all ages. Private brands are important to customers, so they're important to us. We will always be a house of national brands. To do that, we offer value, and we drive innovation with items that you can only find at Walmart. Here's a fun example.
It is if you have teen girls in your life like I do. Last year, we collaborated with Dove on an exclusive Dove Crumble product line. We tapped into the fandom of Crumble Cookies and translated their famous cookies into body wash scents and extended that fandom to something that could only be found at Walmart. We launched online first and followed it with an in-store rollout. The limited edition influencer boxes sold out in two days and garnered over 2.4 billion social media impressions. Customers love this collection, and it's running two times the digital mix of the department. Now, as you've heard throughout the day, we serve customers of all incomes and have been thoughtful about the ways that we elevate our assortment to build partnerships that give customers access to premium brands.
This past year, we launched a collaboration with StockX featuring culturally relevant sneaker trends, Rebag for pre-owned luxury items, and we built a new premium beauty destination. We're also increasingly a destination for new direct-to-consumer and emerging brands. For both founders and for customers, personal care is one of our oldest categories, but it's seeing the most disruption from brands like Dr. Squatch, W by Jake Paul, and many others who are choosing to start at Walmart first. Another example you might have heard of is Lumi. Not only has this brand helped to create an entirely new category, whole body deodorant, but it's also yielded 100% incremental growth, adding seven points to the total deodorant category. Now, finally, our assortment has countless items from small businesses. Those businesses make up the majority of our U.S. suppliers.
I spent time with some of them last week in a small business roundtable during our annual growth forum. We talked about the ways that we continue to make it easy for them to grow with Walmart through programs like our Supplier Academy and our open call event. From private to premium brands, our growing assortment is resonating with customers across all income levels. We find that when they come to us for price and convenience, they're finding so much more. An assortment at the intersection of style, quality, and price. We can see it in how they're shopping and how they're adding to their baskets. You already know we're the largest grocer in America.
When we further grow our assortment and personalize the shopping experience for customers, we see they're taking it a step further and they're purchasing adjacent general merchandising categories like cook and dine, toys, and women's fashion. Take a look at this basket for Taco Tuesday. It includes everything a customer needs, but it also has things that they want, even for the tiniest taco enthusiast. We make it easy for them to come and get it, or we can take it to them and fast. Over the last 12 months, we've delivered nearly 6 billion units same or next day. As we've grown our delivery proposition, customers have become more digital. We've seen double-digit growth in the digital mix in nearly every category over the last three years. Our e-commerce sales have grown 66% at the same time.
We know it's important to have a great assortment. It's equally important that we're not the only ones talking about it. A couple of years ago, we launched Walmart Creator, our affiliate platform where creators authentically share our merchandise with their followers on social media. It helps to elevate the perception of quality and value at Walmart. Walmart Creator is driving higher frequency customers, and they purchase at two times the rate of the overall digital benchmark. They're also disproportionately buying general merchandise. We have a long history of being successful in merchandising, and we have the best merchants in retail. I'm confident that we have the right team delivering the right assortment to become America's favorite. Here's what I'd like for you to remember about our time together.
We are aggressively growing our first and third-party assortment to ensure we have not just some, but everything customers are shopping for. We're a house of national brands, and we're builders of brands customers love. Customers want value, and we have it. Assortment from opening price point to premium, and in response, customers are diversifying their baskets. We're managing our merchandising and marketing mix to serve customers while growing across income cohorts. All of this positions us for growth, growth with customers, growth for suppliers and sellers, growth for Walmart, and ultimately, shareholder value. To share more about our experience, please welcome Dave Gugina.
Thank you, Latrice. Hello, everyone. There are three things I'd like you to take away from what I'll share today. First, we have incredible speed capabilities enabled by our store and supply chain assets. Second, we have a broad and growing assortment.
We are delivering these to customers in an omnichannel way at the everyday low prices that they expect from Walmart. The foundation of our progress and the fuel for our future is our people, our supply chain, and the unmatched reach of our store network. Before I stepped into this role, I led the supply chain team as we set out to transform and connect our U.S. network. When you look at all the pieces together, you can see the true end-to-end platform that we've built. It's powered by data, intelligent software, AI, and physical automation, all working together to create a faster, smarter, and more seamless experience for our customers. The supply chain transformation isn't just about improving our operations. It's fueling our growth.
It's given us clearer visibility into our inventory, expanded our capacity, made us more accurate, accelerated our speed, and allowed us to scale our e-commerce business in a way that's more sustainable, efficient, and drives a lower cost to serve. We have built serious momentum, and we continue to accelerate. We're delivering an omni experience for our customers like no one else, making shopping easy, fast, and convenient. Our value proposition is clear: everyday low prices and a growing assortment across all channels. In recent years, we've become more connected than ever, digitally integrating the way that we serve customers. Whether they're shopping in a store or online, they're engaging with a seamless experience powered by stronger tech and smarter tools. Even when a customer walks into a store, they're still an e-commerce customer.
That's why we're embedding digital into the physical experience, bringing omni capabilities directly into the store. Think store maps in the app to help customers navigate their trip, or QR codes on shelves that instantly unlock our expanded assortment. It's all designed to remove friction, add value, and meet every mission, big or small. Here's another example. In our auto care centers, we're redefining how customers experience auto services with an exceptional mix of convenience and personalization. All from their phone, with just a few taps, customers can book an oil change, check in, and drop their keys at a smart locker. As they shop our store, they'll receive real-time updates through the app and get an instant notification when their car is ready. That is omni at its best: simple, fast, and frictionless. Need new tires? We've got that covered too.
Customers can select from hundreds of options in the store or explore our endless assortment online. All that's left is installation, and of course, we can handle that as well. In fact, our customers are loving this omni option. Year to date, our online app tire purchases are up 22%. No one delivers omni shopping like Walmart. We're blending the best of physical and digital stores and e-commerce into one seamless experience. Omni is our greatest unlock for customers and shareholders. It's the engine behind our e-commerce growth. Once a customer becomes an omni shopper, their engagement increases. They shop three times more often and spend on average 13% more per order. When they do, they go big. Omni customers spend more across key categories. We've seen a 231% increase in the home category. We see a 205% increase in hard lines and a 184% increase in fashion.
This kind of behavior is driving real results. We've grown U.S. e-commerce sales over 20% annually for the past two years. U.S. e-commerce accounts for 17% of total net sales, about 1,000 basis points higher than it was in 2020. Site traffic has surged, growing nearly 30% over the last two years. Conversion is up 81 basis points. We've improved e-commerce economics, cutting losses by 80% over the past year. As John David mentioned, this quarter, we're seeing e-commerce profitability in our U.S. business and are expecting to achieve profitability on an annual basis this year. That didn't happen overnight. We've been on a decade-long journey to reshape the economics of our e-commerce business. We've made great progress in realizing benefits from using our store as local fulfillment nodes, improving inventory position, optimizing route density, and seeing customers' willingness to pay for express.
Looking forward, our profit progression will be supported by these factors alongside growing our penetration of high-margin general merchandise in customers' baskets. Now, let's talk about delivery. We've seen that when customers start using fast delivery, it sets off a flywheel effect. They visit more often, fill their baskets with a broader mix of items, and their average order size goes up. Pickup and delivery have become our single largest acquisition channel for Walmart Plus members. You've heard that when customers use fast delivery, their spending doubles. After using it more than four times, their spending triples. Express delivery isn't just fast. It's essential. Here's a personal story. Recently, my brother came to visit my family in Arkansas. He brought my five-month-old niece, Frankie. When he got to the house, he realized he had forgotten her carrier. What did we do?
I pulled up the app, placed an express order, and 34 minutes later, the item was in our hands. Problem solved. My brother was so amazed he took a picture. We're not just a retailer. We're a forward-deployed fulfillment network. Our stores and supply chain work together to move inventory closer to customers and deliver it faster. I can tell you we are just scratching the surface. Over the past two years, we have massively expanded our delivery capabilities. Delivery windows now span from 6:00 A.M. to 10:30 P.M., and we're only going to continue to meet customers when and where they are. We're always looking for ways to make life easier for our customers. That means meeting them at the intersection of convenience and access. Earlier this year, we announced that we're now offering prescription delivery from stores nationwide.
Prescription delivery was the number one requested service by our customers. We're the first retailer to seamlessly integrate prescription medications and general merchandise into a single streamlined delivery order. You can get your prescription cough medicine delivered alongside your tea, chicken noodle soup, and heating pad. As I said before, I want you to think of fast delivery as a flywheel, starting with the customer experience. The better the experience, the more customers spend. The more they spend, the more trips they make. As our delivery trip frequency increases, we build density, driving down the cost of our business and improving our economics. Also, over 30% of our customers using delivery pay extra to have their items delivered within one or three hours. The momentum continues. We've improved fast delivery availability by 10% year over year.
We're learning ways to improve delivery speed from Walmart International, who are delivering in as little as five minutes. Soon, we will be testing ultra-fast delivery, reaching customers in 30 minutes or less. Reach is just as critical as speed. Two years ago, we could reach 76% of U.S. households with same-day delivery. Today, we're at 93%. As you heard, later this year, it'll be 95%. Our reach with fast delivery is broad. In addition to being able to deliver in large metro markets like Dallas, we can reach smaller rural communities such as Elizabethtown, Pennsylvania, with a population of 12,000, or Leonard, Texas, with a population of 2,000. This growth was made possible by technology we deployed to more accurately predict how far our delivery service can reach. This tech leverages geospatial data to dynamically adjust delivery catchments across the U.S. We're also rethinking our footprint.
Stores are being used as sortation and fulfillment hubs. As you saw yesterday, we do not have a stores-only fulfillment approach. We are scaling next-generation fulfillment centers. We are automating operations to drive capacity, accuracy, and speed, all at a lower cost to fulfill. When we pair stores, traditional FCs, and next-generation fulfillment centers together, we can reach 95% of the U.S. with same-day, next-day, or two-day delivery on millions of items that customers need and want, including marketplace items. You heard from Latrice. Walmart Marketplace continues to expand our assortment with hundreds of millions of items. These Jordans that I am wearing today, I am lifting up so folks in the back can see. I got them on the Walmart app from our marketplace partner, StockX. We are building relationships with brands and distributors to bring even more sellers on board. With Walmart Fulfillment Services, we are helping sellers deliver faster at lower cost.
Our rates are 15% below market. 66% of top sellers use WFS. WFS penetration hit an all-time high of nearly 50%, up almost 600 basis points year over year. All of this: the speed, the reach, the scale. It is turning Walmart into the most convenient, cost-efficient platform for customers and sellers, enabling growth and margin diversification through a more attractive business mix. You have heard others say it. We have incredible momentum. Our stores and supply chain are our foundation, and our omnichannel e-commerce platform has limitless potential. We are delivering what customers want most: speed, assortment, seamless experiences online, in-store, and everywhere in between, all while staying true to what we are known for: everyday low prices. The future is not just exciting. It is omni-powered, and it is ours to lead. The possibilities are endless. Thank you. Next, John and Seth are going to join us for a fireside chat. Thank you.
Thank you, Dave. I wanted to introduce you to Seth Dallaire. A lot of you do know Seth. Seth, you lead the Growth Org. Probably best to start with defining the org, telling everyone what all is in the org and what you do.
Sure. Good morning, everybody. The Growth Org is comprised of five primary teams or organizations, the first of which is Walmart Connect. That is our retail media business, our advertising, which many of you have heard of before. We have seen great growth over the past year, over 26% growth in that business, which we are really excited about. Lots more opportunity there too. The Growth Org also has a membership business, Walmart Plus, which we have talked a lot about today. We are experiencing double-digit growth in that business as well and a nearly 40% increase in terms of membership income.
John David touched on some of those results earlier today as well. Strategically important, lots of momentum there. We also have a team called Data Ventures in the Growth Organization. The Data Ventures team builds, sells, and supports the Sintella product suite and the Walmart Vault app. Now, that business has seen a Q4 sales comp of more than 50%. The client base for that business is growing at 98% compared to last year. It is exciting to share that we secured 100% of our renewals in this first renewal cycle for that business. We also expanded the business to Canada and Mexico, as Ignacio mentioned that they are using Scintilla in Mexico earlier. We also have a team called the Customer Data and Identity Team.
This is not a business necessarily, but it is a new team that's aggregating all of the customer data points that we see across Walmart's businesses and services into a single source of truth that we can use with functions like merchandising or e-commerce and marketing. The fifth team would be consumer-facing marketing. As part of my role and the Riemann expansion there, the consumer-facing marketing for Walmart U.S. rolls up through Growth too.
The goal of the Growth Org is, as John David described, grow the advertising business, grow the data monetization business, grow membership income in the membership file, and help us get more traffic into our physical stores and digital stores. Let's start with Connect. We'll just dive into these just a bit. You hear all the pieces, how they can work together to help with mix.
We launched Connect just over about five years ago, touched more. We've had a lot of growth. How will the pieces fit together between identity, e-com, the marketplace, and Connect? Talk about how that works together.
Yeah. With Connect, the differentiation that we have for that business relative to other offerings in the market is that we have a lot of scale. All of the customer scale that we've referred to today is available for brands to speak to and address as they're shopping. The other differentiated part of the business is that we offer that full-funnel sales attribution. You can understand when you invest a dollar in Walmart Connect product, did someone see the ad? Did they click on the ad? Did they add the product to their basket? Did they buy the product?
Are they a first-time purchaser of that product or a repeat and high-frequency customer? That is unique to Walmart across the physical and digital sales channels. We see a lot of demand from customers who are eager to understand how our customers are shopping, and they want to speak to those customers and influence those purchases both in the physical store and in e-com.
We named the business Walmart Connect. The idea, obviously, is to connect consumer groups, customer groups at Walmart, and our marketplace sellers, our suppliers in a way that helps them build efficiency of advertising.
Yeah.
We develop, obviously, to where we have more insights that are actionable and more data that can help the advertising dollars flow through the way that's most productive for the advertisers.
That's right. We have seen our advertiser counts increase by over 51% year over year.
Most of those increases were driven by marketplace sellers. Those grow over 54% year over year. As we're making investments in assortment and bringing more third-place marketplace sellers into our business, those sellers want to understand how to advertise with us so they can create awareness with our customers. They can ultimately drive sales and compete. We're really excited about the growth that we've seen in Connect as it relates to marketplace sellers. We've also acquired Vizio. The connected TV is an important part or complement to what we're doing with our advertising product supply across the business. We're excited about that for Connect as well.
With the acquisition of Vizio, the team at Vizio, very similar to us culturally. We've known the team for a long time. This is an idea that you brought to the company, and we're very supportive of it.
Talk about the different dimensions where Vizio can add value. It's only been a few months, so we're in the process of integrating and learning, growing. Talk about how this is going to play out.
It's really exciting. It works on two dimensions for us. The first is that Walmart customers love Vizio TV. As you mentioned, we've had a relationship with Vizio before. Vizio offers an everyday low-price TV, lots of function and great form in terms of the types of sizes of TVs that they offer. We've had strong signal from customers that they just buy a lot of Vizio TVs, which is great. The business of TVs is changing, and TV sales are changing pretty dramatically. This is the other dimension. It used to be you would buy a TV for a wholesale price.
You would sell it for a retail price, and that would be the business. That would be the revenue that we would generate. Increasingly, the hardware is less important than the software or the operating system that sits in the television. When the customer brings the TV home and puts it on the wall or on a shelf or somewhere in the kitchen, let's say, when they turn on the TV, that technology and those operating systems allow for a better experience. Advertisers are allowed to speak to the owners of those TVs in ways that are more prescriptive, so they get better, more relevant advertising. The technology itself, that operating system that a customer uses, allows them to discover new content. It could be content from different streaming companies.
Those streaming companies or the studios will advertise to customers to say, "Hey, watch my show," for instance. There is a big business there that sits in the technology and the operating system that's inside the TV that's quite different. We now have an option to play in that market. We're really excited about it.
It feels like longer since we made the announcement, but we actually made the acquisition. We completed the transaction about four months ago. That's right. Where we are today would be interesting. I think, hopefully, that explains the longer-term vision. Let's talk about where we are right now.
There's a lot going on. We're integrating and onboarding Vizio as a company and their executives. That work's been happening really from the jump.
We're excited because we're launching a beta test solution in the next couple of months where we will allow a select group of Walmart Connect advertisers to directly plug in and access Vizio connected TV inventory.
That's new.
We're excited about that work. We're asking the Vizio team or pushing them to continue investing in the SmartCast operating system. That's not a business that sits still. Customers and owners of those TVs expect that they'll have more functionality. They'll be able to discover programs or find the content that they want easier. We're continuing to work on that. We're also exploring ways that we could offer or extend that Vizio SmartCast operating system to other TV manufacturer OEMs. Lots going on with Vizio.
A lot to happen there.
Super interesting to be able to combine what we understand people's preferences are with the data, as you described earlier, through the customer identity program. Let's switch gears just a bit. Move over to Data Ventures, another business area that's even younger than Connect. It has a few pieces in it. You mentioned those earlier. Let's just work our way through and talk about supplier insights, seller insights, and the other things that are happening in the venture.
Sure. Happy to. It's some real exciting progress that's happening with Data Ventures. There are two primary products that the Data Ventures team builds and services. The first is Scintilla. That's a set of capabilities that allows our supplier partners to understand inventory positions and customer signals and demands and behaviors at a store-level grain, if they like. We're taking that information. We're collecting it with technology.
We are pushing that information out or that data out in APIs to our subscriber partners who are suppliers to allow them to interrogate that data in ways that they see fit. This is very interesting for a supplier because you may say, "Now that I have access every 24 hours to my share position or sales that are happening in Walmart stores in the U.S., I might see new trends." Julie Barber earlier today mentioned Poppy as a brand, prebiotic soda. Latrice mentioned full-body deodorant. These are two categories that a year or two ago, I'll speak for myself, I was not aware of. Now they are big areas of interest for our customers.
The data in Scintilla will allow a manufacturer of that fast-moving consumer good, a beverage or a personal care product, to see, "Hey, what's this product or brand that's on the shelf that's now taking up more sales? Do I need to have that type of offer in my portfolio to meet that demand with the Walmart customer?" Our store operators and merchants use the data as well in exciting ways. If you're a merchant and you're buying a new product and you're putting it on the shelf, there's some risk there in how our customer is going to respond to it. We may say, "You're going to put that particular prebiotic soda on 400 store shelves in the U.S." We now can see how customers are reacting to that product every 24 hours and understand, "Well, geez, they're buying that product.
Let's now flow that to 4,600 stores instead of 400. That same data that the merchant uses or the store operator uses, our suppliers use as well.
Having the platform where it's available to suppliers, to the merchants, to the store operators, we can spot the trends early.
That's right.
Get the organization aligned around growth, and we can move really quickly.
That's right.
Which then leads to acquisition of the Vault app, now Walmart Vault, which helps empower then suppliers and others that are servicing the facilities and the facility to take the same actions.
That's right. The Walmart Vault app is used by suppliers who are in our stores or service providers who are in our stores. One example might be if I'm delivering some freight, let's say beverages, pallets of beverages to the back of a Walmart store.
If I show up and there's no associate there to receive the order, that's time wasted for me before getting off to the next delivery. Vice versa, if I have an associate ready to receive the order and we thought the truck was coming 30 minutes earlier and they're not there, that's time wasted in the store as well. We may not have the product on the shelf. We may be missing orders if that's inventory that needs to backfill an inventory position. Vault allows the supplier to see what's happening, what tasks they need to do. That savings, allowing the associate to be on site for receipt of something like beverage in the back of the store, gets the supplier off more quickly, which creates efficiencies for their business. Within a network like ours, it's quite a large opportunity.
Then also helps us get product accurately into the store on the shelf. We hit first-time pick rates. We hit pre-sub, post-sub. We deliver perfect orders for customers and members, which keeps them coming back and shopping with us.
Exactly right. The data that comes out of Vault is increasingly being integrated into the process and workflows that our associates use. Whether it is a supplier or an associate or some activity that may determine that we have a nil pick or out of stock, that is just data that helps feed the loop. It is another way that at Walmart collectively, we can listen to the people that are taking care of our customers.
That is right.
Listening in person or from the data coming through. It is just making us be a better operator.
That is right.
As we were investing in making progress with Walmart Connect on the advertising side, suppliers were saying, "How do I connect the advertising investments with the behaviors or sales that I'm seeing every 24 hours by store or by region? I can be more efficient by flighting my advertising and marketing support to those areas where I'm seeing the best performance." We have joined those two things together now. A lot of the observations that you may see at the shelf or in a store or in the app, a supplier can now apply those to Walmart Connect and use our Walmart Connect Ad Center to actually bring them to life and act on them and drive better results.
That's right.
For a seller, supplier, a store, an operator, a merchant, all of the individuals, all the teams who are trying to drive sales with more customers, it gives you actionable insights, real-time information about what's actually happening. If you think back to the time when we launched our pickup delivery business, that gave us insight into what people were trying to buy and what we could actually fulfill at the counter, which made our merchandising team stronger. It's made our modular stronger because then we knew true intent versus we sold. Pulling all this together is working the same way, which then leads to the value then that you can create with Walmart Plus, the idea of amortizing shipping costs, delivery costs over time, and a suite of benefits that come together.
You mentioned some great stats about Walmart Plus earlier, and we talked about it a few moments ago. It's 90% of our from-store delivery volume. A lot of progress. Pull all this together. How does it help our Plus members?
When we have better assortment at an everyday low price, it drives frequency. If we're allowing our customers to shop however they prefer, whether in the physical store or in the app, then it obviates a membership. That frequency, you might say, "Gosh, I'd love the convenience of delivery. That was something I never had before." You try it once.
If we have the right assortment for you and deliver the perfect order, meet the delivery experience that you want, you may join or try to join the program, in which case you may become a full-price member, and you renew if the experience is good. The types of members that we have and the demographics of who our members are is pretty interesting as well. Not surprisingly, they look like the Walmart U.S. customer base. Really, they're representative of everybody. We have parents, busy parents, millennials, students. We've got people like Dave who are looking to get a fast delivery for a relative. We have students and people who are using government assistance. We have people in the lower household income category, but we've made a ton of progress with people with higher household incomes as well.
The things that are universal across the membership program are that once we see them become members, their spending behavior changes with us pretty dramatically. We see members have twice the frequency of visits to our stores as non-members, and they spend three times as much. Some interesting things about the members is that they kind of use the program in different ways. The primary benefits have been delivery. If you are in the lower household income category, you love the fact that you can get the groceries delivered. You do not have to give up an hour of work in order to go do the shop. The delivery saves you the cost of public transportation or fuel cost or using a ride-sharing app, for instance, like a Lyft or Uber. That works really well.
We hear from our assist members that that's really important. That, to me, was not obvious in joining the program that that group of customers would have discretionary income to spend with us. They tell us they really value it that way. The other end of the spectrum with households that have higher income, they love the frequency. All the things that Dave was talking about, frequency, fast delivery. The people that are using fast delivery are that segment of our member base that are using it most frequently. They love the convenience. They love the fact that they can get things faster. Two very different groups in the membership, all of the members using the program in different ways.
The program is designed to be very flexible for all of our customers depending on how they want to shop the brand and consistent with what you heard earlier from Sam's Club, as you can help earn the business from a customer from in-store to digital and then into this frequent delivery program and then the membership, spend goes up. It's about three times the average. When we take a step back and look at what Seth has done inside the company, it's a combination of understanding customer intent digitally, applying it across multiple channels, and then this entire business we call the Growth Org, which is marketing, design, Walmart Connect, Data Ventures, Walmart Plus.
It's a bit of a flywheel within itself, but when you apply that flywheel to the entire business, we see it as a very powerful accelerant that's going to help us with customer relationships over the time. All these programs, we get what we deserve. If we deliver the order in full, we deliver it on time. We see repeat rates. The faster we see deliveries happening, the more customers we see coming back. This is a great example of a flywheel that is helping the entire business, and it's mixing the business up. A lot of benefits coming here, not just to the business, but more importantly to our customers, our advertising, and value creation for all those involved. Seth, it has been great to have you on the team. Thank you for taking the time to come up.
We're going to break for a few moments. We'll take a short break, and then we'll come back in just a few minutes, and then we'll set up for question and answer. Seth, thank you. Thank you, everyone.
Thank you
for the time this morning.