Store value in the digital age: Walmart
The world's largest retailer reports quarterly results today.
Analysts expect a decent show.
They forecast earnings-per-share of $1.22, compared with $1.08 for the same quarter last year, and same-store sales growth of 2.3%.
Gross margins are likely to remain under pressure, though this is by design: Walmart has kept prices low to avoid being undersold, boosting volume and helping it steal market share from mom-and-pop rivals.
Meanwhile, to battle Amazon, it is investing heavily in e-commerce.
It wants to leverage its strong physical presence—90% of Americans are within ten miles of a Walmart—by expanding in-store pickup of groceries bought online.
The goal is to grow e-sales by 40% this year, albeit from a tiny base.
Walmart is also repositioning abroad.
In May it bought a majority stake in Flipkart, an Indian e-commerce firm, for $16bn, while selling off holdings in Britain and Brazil.
⑩ No sleep, then, for the Beast Bentonville.
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