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Wal-Mart Stores, Inc. (NYSE:WMT) Trying To Kill Several Birds With One Stone?

Boston, MA 08/21/2014 (wallstreetpr) – Wal-Mart Stores, Inc. (NYSE:WMT) has seen it all in recent times. The retailer is mostly challenged with competition in the industry that is fronted by its brick-and-mortar peers and online rivals. In fact, some of its rivals have been joining forces to better take it on in key markets. The other serious challenge that Wal-Mart faces is the weak consumer spending. Rising costs is yet another issue for the business, which somehow no longer enjoys the status of being the largest retailer in the country because it has nothing to show for it. However, there appears to be so much happening that most investors have not been able to lay their hands on.

Impact of convenience stores

The company recently announced a slight improvement in earnings and that was attributed to the convenience stores that the company is setting up across the country. It already has about 20 such stores, which are fondly called Wal-Mart Express stores. The stores are being opened in the neighborhoods so that the company can bring its low-prices closer to more customers. In fact, one of the reasons its smaller competitors are doing a little bit better is that they have these neighborhood stores.

Spending trigger

As Wal-Mart Stores, Inc. (NYSE:WMT) moves to bring its cheap products closer to the people, it hopes to make more sales. The company believes that the stores will not only offer convenient shopping for the customers including some that may not have had Wal-Mart experience, they will also create jobs in the neighborhood and by creating jobs they give people the income that would again return to them as the people shop from Wal-Mart stores. Therefore, the company believes its convenience store approach is a win-win situation.

Wal-Mart Stores, Inc. (NYSE:WMT) reported its 2Q2015 on August 14, during which the company said earnings were $1.21 a share on revenue of $119.30 billion. The company met estimates on both fronts – EPS and revenue.

Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing.

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