BENTONVILLE, Ark. – Walmart’s focus on smaller formats and its e-commerce business is starting to pay off, reports The Washington Post.

During the retailer’s second quarter earnings report last week, Greg Foran, Walmart U.S. president and CEO, commented that comparable sales for the Neighborhood Market format rose approximately 5.6%, with comparable store traffic increasing 4.1%. “During the second quarter, we opened 22 Neighborhood Markets and remain on track to deliver 180 to 200 new units for the year,” he said.

E-commerce sales globally increased approximately 24% on a constant currency basis, with double-digit growth in the U.S., U.K., China and Brazil.

“I’m encouraged by the performance of our international business, our Neighborhood Market sales in the U.S. and by our e-commerce growth,” said Walmart Store Inc. president and CEO Doug McMillon in a press release. “As it relates to our challenges in the quarter, we wanted to see stronger comps in Walmart U.S. and Sam’s Club, but both reported flat comp sales. Stronger sales in the U.S. businesses would’ve also helped our profit performance.”

Walmart is continuing to invest in enhancing its e-commerce capabilities and McMillon pointed out the need to move quickly to serve customers more effectively.

“We see opportunities to improve in merchandising, pricing and store level service in our supercenters, and we are working to close those gaps,” added McMillon. “Our investments in e-commerce and mobile are very important, as the lines between digital and physical retail continue to blur. Our customers expect a seamless experience, and we’re working to deliver that for them around the world.”

The Washington Post notes that as of June, Neighborhood Market stores still represented less than 8% of Walmart’s U.S. retail units.