![]() ![]() Walmart's Inventory vs sales growth (earnings reports, 10-Q's )Ĭlick on this link to enlarge it so that it's legible. With Walmart, the model is "come in for grocery and leave with something else." Walgreens business model was the exact same concept for years, but with prescriptions driving foot traffic and the "convenience" end of the business driving margins. In my opinion, Walmart clearly has a sustainable competitive advantage in the grocery business, and it fits perfectly with their business model since it drives foot traffic, it's a lower-margin business (Walmart customers can walk in and get what they need for less than $20), all of this driving the ability of their customers to say, once they are in the store, "Well, I'm here now, maybe I can take a quick look for the new pair of slippers I need." When Jeff Bezos stepped down from his CEO position at Amazon, one of the parts of Amazon's business he said he wanted to focus on was Fresh and groceries, since the concept never really gained traction like the rest of the business. We bought new positions in Walmart (WMT) for the first time in many, many years recently, after the latest EPS blow-up and the drop in the stock from the $140's down to the low $120's.įor years, my thought process was (rightly or wrongly) that Walmart was at a structural disadvantage to ecommerce and in particular Amazon, but what gradually got me thinking otherwise was that Walmart - with grocery representing about half of total revenue - is the largest grocer in the world, (by far I would think) and Amazon Fresh and Amazon grocery were having a hard time making that aspect of ecommerce scalable. In times of economic turmoil, Americans seem to prefer Walmart. Given WMT's product scope across the US economy, it's certainly an inflation beneficiary, but as America's largest private-sector employer, it's also sensitive to the wage pressures being seen today.ĭuring the 2008 recession, WMT averaged roughly 3.6% comp's, split between "ticket" and traffic. ![]() Grocery - half of WMT revenue each year - is the one product segment that Amazon has had difficulty getting any kind of market share Revenue estimates continue to be revised higher, while EPS estimates remain under some pressure. WMT is testing its 200-week moving average technically, traditionally an area of good support. Jun 29īack Into Walmart: It's Not A Revenue Problem, But An Inventory Issue Michael Ken and Adam exclusively handle injury cases, with an emphasis on national products liability litigation, including cases involving burn injuries from defective products. ![]() Johnson is a founding partner of Johnson //Becker, PLLC. However, the Plaintiff alleges that the pressure cooker contains defects which allow unsuspecting consumers to remove the lid while the cooker is still under pressure causing the scalding hot contents to be projected from the unit. According to the Complaint, the incident occurred as a result of the failure of the pressure cooker's safety features" which are supposed to prevent the unit from both building pressure if the lid is not closed properly and from being opened if the unit is under pressure. Johnson //Becker filed this Complaint in New York Federal Court on behalf of Jean Havens alleging that Walmart Inc., the exclusive distributor of the Farberware pressure cookers, misrepresented the safety of its pressure cookers. Johnson // Becker, PLLC Files New York Federal Lawsuit Against Walmart After Farberware Pressure Cooker Causes Burn Injuries
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