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Wal-Mart Stores, Inc. (NYSE:WMT) Loosing Interest In Family Dollar Stores, Inc. (NYSE:FDO)

Boston, MA 08/20/2014 (wallstreetpr) – The market participants do not expect Wal-Mart Stores, Inc. (NYSE:WMT) to submit counter bid for Family Dollar Stores, Inc. (NYSE:FDO). Wal-Mart said that Family Dollar is not ideal for its smaller-format stores. It has conducted detailed internal review and has then finally reached a conclusion. Wal-Mart has disclosed its plans of redesign its website in 2015 earlier this month. It wants to enhance its online sales as the customer shifts towards online shopping.

The concept of smaller stores

Wal-Mart is focusing on the concept of smaller-format stores. It considers that Family Dollar won’t be able to fit in the new concept. Wal-Mart is focusing on starting smaller grocery stores so as to enhance its sales performance. It will provide Wal-Mart with an edge to strengthen its position against rivals.

Wal-Mart Stores, Inc. (NYSE:WMT) appointed Greg Foran as new CEO of retail giant in the month of July. The change was made to bring in the fresh perspectives in the existing business model. Foran has remained as the CEO of Wal-Mart China. Wal-Mart has reduced its earnings guidance of a full year. The earnings can take a hit due to the higher investments in the e-commerce segment and higher expected healthcare costs in the US.

The perception

Some of the participants added that Wal-Mart never approached Family Dollar regarding an acquisition offer. Brook Buchanan, the official spokesperson of retail giant, didn’t make any comments on the rumors of a potential acquisition.

Buchanan just said that Wal-Mart continues to focus on its core business and on all those things that work well for the company. The focus remains on operating the Wal-Mart business and doing it well. Further Buchanan added that Wal-Mart Stores, Inc. (NYSE:WMT) is in a good position from where it can serve the customers whenever and wherever they want.

Published by Christine Lawrence

Christine Lawrence is a financial analyst. She loves analyzing socioeconomic trends in the background of financial moves. She has overall seven years of experience in Auditing, Finance and Writing.

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