Walmart's bruising battle with Amazon cuts its profit even as revenue rises

22 February, 2018, 01:02 | Author: Evan Mason
  • FSMNews

E-commerce sales in its US business slowed to 23 percent during the fourth quarter, from 50 percent in the third quarter. The company stocked up on holiday gifts like toys, TVs, and electronics, but this harmed the in-stock levels of some other items that are stocked in warehouses and in demand year-round. While sales rose, they did so by less than expected. "We're making real progress putting our unique assets to work to serve customers in all the ways they want to shop" said Doug McMillon President and CEO, Walmart. And Albertsons Cos. said it has agreed to acquire Rite Aid Corp.

On Tuesday February 20th, 2018, Walmart released their fourth quarter earnings before the market opened for trading. McMillon stated that fully lapping its acquisition of contributed to the sudden deceleration, and Walmart has acquired a number of other e-commerce companies since then.

Walmart is building fewer big stores and focusing on its online business while beefing up benefits for workers. It's also getting ready to launch an overhauled website with a focus on fashion and home furnishings. It has teamed up with Lord & Taylor to create dedicated space on its site. "A smaller portion of the slowdown was unexpected as we experienced some operational challenges that negatively impacted growth".

But Walmart has a long way to go before it even gets close to Amazon's online dominance.

Walmart, which owns Asda in Britain, said that online sales had grown by 23 per cent year-on-year in the period, which includes the Thanksgiving and Christmas holidays.

Walmart recently asked vendors to supply more merchandise priced at $10 and higher in a push to turn an online profit.

However, that was less than half the growth recorded in the previous quarter and lower than in the same period of 2016.

WTN: Nittany Lions Open Big Ten Play
The game was scoreless through the first three innings until Sloniger lifted a 1-1 pitch over the right field wall in the fourth. DirecTV Now: There are four different channel packages, while "Just Right" and above are the ones that include Big Ten Network.

Real Madrid win eight-goal thriller, Atletico keep up Barca chase
"We knew we were under pressure at 2-1 and had to turn the game around, but we did and again this will help us gain confidence".

All-New 2019 BMW X4 Coupe-Style SUV Arrives this Year
The new X4 is longer and wider than its predecessor , with more space in-between its front and rear axles. That means boot capacity is up to 525 litres and there's a shade more rear passenger legroom.

Erik Gordon, a professor at the Ross School of Business at the University of MI, said Walmart's trouble figuring out online inventory during the quarter raised questions about its preparedness to fight Amazon.

The retailer managed to report weaker earnings per share at $1.33 versus what the market and most analysts predicted which was at $1.37.

Home Depot edged down 0.14 percent after the largest USA home improvement chain's quarterly profit beat market estimates in an improving housing market.

Home Depot HD.N rose almost 1.6 per cent after the largest US home improvement chain's quarterly profit beat market estimates for the sixth straight quarter. Customer counts rose 1.6 percent.

Walmart has been beefing up efforts to compete with Amazon - which entered the grocery game with its $13.7 billion buyout of Whole Foods previous year - through steep discounts on its platform, curbside pickup, and a partnership with Google to compete with Amazon's Alexa-powered devices.

For the full fiscal year, Walmart brought in $500.3 billion, a 3% year-over-year increase, and e-commerce sales grew 44%. The company announced earlier this month that it was offering free shipping for premium members and simplifying its membership tiers. We're expanding online grocery in the U.S. and around the world and broadening our delivery capabilities in the U.S., China and other worldwide markets. (NASDAQ:AMZN) still dominates the online shopping industry, solid growth from Walmart's e-commerce segment made investors wonder whether the traditional brick-and-mortar retailer could give Amazon a run for its money.



Heavy rain causes minor flooding throughout Chicago area
Long range models show that seven day rainfall totals could climb to the five to ten inch range over NE TX, SE OK and SW AR. Heavy rain is expected in the Mid-South Wednesday and Thursday , elevating the risk of flash flooding across the area.

More ice in the forecast Monday night through Tuesday
For Central Iowa, including the Des Moines Metro, temperatures will fall from the mid 40s this morning to the mid 30s by 5 PM. A cold front will arrive tonight , bringing winds around to the north and ushering in a blast of cold air.

S. Korea and USA to continue joint military drills
South Korea will go ahead with spring military drills alongside the United States despite North Korean opposition, Seoul's Defense Ministry stated Tuesday.

Red Sox Ink JD Martinez
The Red Sox finally appear to have replaced the offensive void left by David Ortiz upon his retirement after the 2016 season. But he can play all three outfield positions and should have an impact. "No, I think we have the right team", Henry said.

US Commerce Secretary to reveal options for steel, aluminum tariffs
Further, the industry creates $75 billion in direct economic impact and $186 billion in total impact, around 1 percent of U.S. The investigation sought to determine whether the imports posed a threat to the country's national security.

Mitt Romney says he's running for Senate from Utah
He is also known for serving as head of the organising team for the 2002 Winter Olympics in Salt Lake City in Utah. Former Massachusetts governor and one-time Republican presidential candidate Mitt Romney is running for the U.S.

Magic Johnson Has 'Special Relationship' With LaVar Ball
Los Angeles Lakers rookie Lonzo Ball dropped his debut mixtape, Born 2 Ball , under the rap moniker Zo on Thursday. Lonzo Ball is without a doubt the most hyped draft prospect from this decade.

Kim impersonator a hit with North Korean cheerleaders
In North Korea, anyone impersonating of a member of the ruling Kim family would be considered blasphemous. Howard had caused a commotion during the February 9 opening ceremony when he and a person dressed as U.S.

Led coalition kills dozens of Russians in Syria?
Over the weekend, reports emerged on Russian blogs and elsewhere that an unknown number of Russian contract soldiers were killed. The Ministry of Defence meanwhile denied that the Syrian operation had been coordinated with Russian military command.

Investment and development pledges for Iraq at $30 billion - Kuwaiti Foreign Minister
Qatar announced $US1 billion in loans and investments while the United Arab Emirates pledged $US500 million for rebuilding. The Islamic Development Bank also pledged $500 million toward reconstruction in Iraq.