Wal-Mart is one of the largest companies in the world today. The entire retail industry has been shaken by what is going on with Amazon. However, Wal-Mart is the one company that has the resources to fight back. Over the past few months, the company has shown that has what it takes to fight back and win with customers. In the most recent earnings statement, which was released this morning, Wal-Mart reported one of the best comparable store sales growth numbers in years. The 1.8% growth number is a great number for a company as big as Wal-Mart. Over time, they have proven to understand what it takes to drive their numbers as high as possible.
With all of the changes that are in the industry this year, Wal-Mart is the type of company that must start investing in order to succeed at a high level in online commerce.
Online Retail
One of the biggest issues that Wal-Mart has is that store traffic is moving online. This means that more customers than ever before are starting to move their money to where Amazon sells their goods. This causes two major issues for the traditional retail companies. Not only will they lose the sale of the products that are being bought online, but the stores are also losing traffic that leads to more sales. Think about it. How many times have you gone into a store to pick up a quick bite to eat and then you end up spending hundreds of dollars on various things around the store?
These are the type of transactions that people are starting to see a move to Amazon. If Wal-Mart is going to continue to compete, it must make investments in this area.
Future Plans
Wal-Mart has a lot of great plans coming in the future for its business model. Not only is the company investing in its stores, but it is also investing in online retail.
This is a story that will continue to unfold, but the latest numbers coming out of the retailer show that the company is going all of the right things in a rapidly changing retail environment. Over the years, this is a company that can continue to be the leader in retail.
