18.02.20 Walmart Loses Money

February 21, 2018

$31 Billion
“Wiped” From Walmart ==================================

Battling For Your Business

  • On Tuesday, Feb 20th, Walmart stock dropped 10% – the LARGEST drop in decades.
  • Stock decline = approx $31 billion in market value.
  • Investors reacting to news about Walmart’s earnings, specifically online business.

Why This Matters

  • Walmart’s stock can have broad impact – it accounted for a third of the Dow’s overall decline Tuesday.
  • 1 of 30 stocks traded on the Dow but its higher stock price means it weighs heavier on market overall.
  • Plus, investors see it as a symbol of America’s economy.

Why Did This Happen?

  • eCommerce business increased overall, but not in final months of 2017.
  • Inventory issues for online sales surfaced during holiday season, i.e. gift items squeezed space for basic goods & created problems.
  • Bottom Line: Walmart (world’s largest retailer & America’s largest private employer) didn’t meet expectations.

How Badly Businesses Want Your Online $$

Chasing “Amazon”

  • Albertsons grocery chain is buying “remainder” of Rite Aid.
  • Walgreens bought other portion of Rite Aid business.
  • Target bought “Shipt” (same-day delivery service).
  • Walmart bought “Jet” (online retailer).

Despite lower-than-expected earnings, Walmart has high hopes for year ahead:

by Jenna Lee,