• Tuesday , 6 December 2016

Cashback News – Feb 22: What’s up with Walmart?

Whats up with WalmartOur recent series of posts covering Amazon’s news, strategies, and insights proved very popular with readers. Today, we’re taking a similar look at what’s up with Walmart, recent sales results, challenges and what’s ahead for the huge retailer in-store and online. We’ve gathered a collection of perspectives to inform you on Walmart and its potential impact on the bigger retail picture as well.

Pyments.com noted Walmart’s Q4 income was down 8% to $4.57 billion with soft sales forecasts ahead. Internet Retailer reported global e-commerce sales for Walmart were up 12.3% to $13.7 billion from $12.2 billion a year ago. ZDnet said Walmart’s biggest challenge is presenting one seamless look for consumers across its stores, online and on mobile. Geekwire contrasted Walmart’s Q4 e-commerce sales up 8% with Amazon’s Q4 sales growth of 22%.

LearnBonds also noted that Walmart spent billions of dollars spent on e-commerce to achieve 8% holiday sales growth in Q4 compared with 10% in Q3 and 16% in Q2. Also worrying, according to thefiscaltimes.com was the projected lack of sales growth in 2016, closure of 269 stores and layoffs of thousands of employees. Footwear News highlighted Walmart’s 16.4% drop in Q4 revenue compared to Q4 2015. That said, revenue still was $482.1 billion in 2015. CBS News reported, not surprisingly, that Walmart had spent tens of billions of dollars on e-commerce and failed to keep up with Amazon. Not unique to Walmart.

Walmart Q4 Earnings Slip, Sales Forecast Dim

http://www.pymnts.com/news/retail/2016/walmart-forecasts-slow-sales-ahead/It could be a tough year ahead for Walmart, which may not be particularly shocking given the state of the bricks-and-mortar ecosystem.

The results of Walmart’s Q4 earnings made that clear when the company revealed that it expects “relatively flat” net sales for much of the year. The previous forecast had projected sales growth of 3-4 percent. This comes, of course, during a time when the retail giant is shuttering stores globally to adjust to the changing times.

While Walmart’s Q4 income was down nearly 8 percent to $4.57 billion, down from the prior year’s $4.97 billion (and total revenue falling 1.4 percent to $129.7 billion), there was a bright spot in Walmart’s earnings that shows it’s at least managing to take advantage of shopping trends. Via pymnts.com

WalMart’s online sales growth slows for the year

https://www.internetretailer.com/2016/02/18/wal-marts-online-sales-growth-slows-yearChallenges in big e-commerce markets outside the United States—Brazil, China and the United Kingdom—hampered web sales growth for Wal-Mart Stores Inc. in fiscal 2016 that ended Jan. 29, CEO and president Doug McMillon said today on an earnings call with investors.

Global e-commerce sales for the retail giant, No. 3 in the Internet Retailer 2015 Top 500 Guide, grew 12.3% to $13.7 billion from $12.2 billion a year ago, the company reported. For the fourth quarter, online sales grew 8%, though Wal-Mart did not break out dollar figures. The metrics were adjusted for currency fluctuations. Wal-Mart did not disclose currency-neutral e-commerce numbers.

E-commerce growth at Wal-Mart slowed in fiscal 2016 compared with the 22% growth during fiscal 2015 and 30% jump in fiscal 2014. McMillon said economic weakness in China and Brazil and the online competitive landscape in the U.K. posed e-commerce challenges for Wal-Mart last year. Via internetretailer.com

Walmart’s e-commerce annual sales hit $13.7 billion

http://www.zdnet.com/article/walmarts-e-commerce-annual-sales-hit-13-7-billion/Walmart generated $13.7 billion in global e-commerce sales in fiscal 2016, up 12 percent from the previous year, and the company outlined plans to scale its Internet sales. After all, it has a lot of catching up to do given Amazon had $63.71 billion in North America sales and $35.4 billion internationally for the year.

The retail giant was under pressure after its earnings and outlook disappointed Wall Street. Walmart delivered earnings of $1.43 a share on revenue of $129.7 billion for the fourth quarter ended Jan. 30. For fiscal 2016, Walmart checked in with earnings of $4.57 a share on revenue of $482.1 billion.

On a conference call, Neil Ashe, Walmart’s CEO of e-commerce, said the company’s investments are starting to pay off. The trick for Walmart is to provide one seamless experience across the retailer’s app, site and stores. Walmart is also boosting its online assortment and expanding its grocery business via the Internet. Via zdnet.com

Walmart’s e-commerce growth slows to 8% as Amazon soars to record sales

http://www.geekwire.com/2016/walmart-and-amazon-face-off-over-online-retail-market/Amazon is expanding its online lead over Walmart, according to the latest results from the retail giants. The competition between the two companies is watched closely, since Amazon is the number one online retailer and Walmart is the number two. Walmart’s net online sales were up only 8 percent for the peak holiday quarter, the retail chain reported today. (Walmart didn’t break out specific e-commerce dollars.) That compared to 22 percent growth in Walmart’s online sales for the fourth quarter of last year.

Despite Walmart rolling out special holiday offerings including an early start to Black Friday and Cyber Monday in an attempt to boost e-commerce, its online sales growth is slowing. Overall, Walmart’s revenues for the quarter fell 1.4 percent to $129.7 billion. In contrast, Amazon’s net sales were up 22 percent for the quarter to $35.7 billion. Via geekwire.com

Wal-Mart Stores, Inc. (NYSE: WMT) Trails Amazon.com, Inc. (NASDAQ: AMZN) despite Heavy Marketing Spend

http://learnbonds.com/127049/wal-mart-chases-but-cant-catch-amazon-com-despite-heavy-marketing-spend/Wal-Mart Stores, Inc. (NYSE:WMT) has shelled out billions to boost its Web platform in order to rival Amazon.com, Inc.(NASDAQ:AMZN) However, shareholders may not want to believe that e-commerce sales are tanking. The Bentonville, Ark.-based retailer reported Thursday that e-commerce sales grew 8 percent in the fourth quarter, down from 10 percent and 16 percent in the third and second quarters, respectively.

Amazon reported last month that its combined retail sales in the fourth quarter rose 20 percent to $33 billion. Wal-Mart’s e-commerce sales growth rate of 8 percent trailed the industry average of 9 percent during the holiday period, data compiled by the National Retail Federation shows. In total, all online retailers reported sales of $105 billion in the festive period. Via learnbonds.com

Walmarts Q4 Sales & Earnings Dip, Weighs On Stock Market

http://footwearnews.com/2016/business/earnings/walmart-q4-sales-profit-earnings-stock-market-193838/The earnings woes of retail giant, Wal-Mart Stores Inc. is weighing on the U.S. stock Market today offsetting a boost to the Dow Jones industrial average courtesy of technology firm IBM. The retail behemoth said its fourth quarter operating income slid 16.4 percent year-over-year, or 13.6 percent on a currency-neutral basis, to $6.6 billion. Reported diluted earnings per share (EPS), at $1.43, came in below market watchers’ estimates for EPS of $1.46. Adjusted EPS, however, beat estimates at $1.49.

Sales also declined 1.4 percent, to $129.7 billion, compared to sales of $131.6 billion in the comparable quarter. Excluding currency impacts, Walmart said its Q4 revenues would have climbed 2.2 percent to $134.4 billion. For the fiscal year, Walmart’s diluted EPS was $4.57 (or $4.59 adjusted) and its total reported revenue was $482.1 billion (or $499.4 billion currency neutral). Via footwearnews.com

The Scary Truth Behind Walmart’s Struggles

http://www.thefiscaltimes.com/2016/02/18/Scary-Truth-Behind-Walmart-s-StrugglesWalmart is not expecting any significant sales growth in the coming year — and that’s bad news for the retail industry as a whole. In October, the retail giant said that net sales would grow 3% to 4% every year for the next three years. However, in its fourth-quarter earnings results on Thursday, Walmart had a less optimistic prediction for fiscal 2017 (calendar year 2016).

“Including store closures and the impact of the strengthening U.S. dollar, we now expect net sales growth to be relatively flat in fiscal year 2017,” Walmart CFO Brett Biggs said in the company’s earnings call. Walmart closed 269 stores in late January, laying off thousands of employees. For retail rivals, Walmart’s struggles are not cause for celebration. Instead, they reveal a swiftly changing retail landscape where few can keep up. Via thefiscaltimes.com

Walmart’s so-far futile pursuit of Amazon

http://www.cbsnews.com/news/walmarts-so-far-futile-pursuit-of-amazon/Although Walmart (WMT) has spent tens of billions of dollars in recent years to build up its e-commerce business, the world’s largest retailer continues to struggle against rival Amazon (AMZN).

The Bentonville, Arkansas-based discount retailer on Thursday reported online sales growth of 8 percent in its fiscal 2015 fourth quarter (ending Jan. 31) and 12 percent for all of 2015. That’s well under Amazon’s 22 percent fourth-quarter growth and 20 percent gain last year. Concerns about Walmart’s e-commerce business are one of the reasons the company’s shares have slumped more than 25 percent over the past year.

Many experts are doubtful that Walmart will ever catch up to Amazon. Global sales rankings by Internet Retailer, a trade publication, show Apple (APPL) ranked second behind Amazon in recent years, with the retailer in third. Via cbsnews.com

Walmart challenges ahead

Yes, there are challenges ahead and e-commerce competition from Amazon and other competitors is growing. But Walmart is still a multi-billion-dollar global business with great prices and customer loyalty. It just needs to continue adopting new strategies and technology, innovating, staying true to its mission and adapting to the fierce competition.

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