The world's largest retailer, Wal-Mart, is cutting its profit outlook with competition increasing across the board
The world's largest retailer, Wal-Mart, is cutting its profit outlook with competition increasing across the board. It's not that US consumers are spending less money, it's that they're their spending it elsewhere. For instance, WMT is spending millions to update its online sales business, but online only represents 2% of the company's revenue. Meanwhile, most analysts agree the company has no chance to compete with online retail giant Amazon.com. Moreover, WMT's small store format is losing out to the discount dollar-store chains and its grocery business is getting hurt by traditional grocers. Basically, Wal-Mart's Supercenter concept is no longer getting it done as customers are increasingly attracted to more specialized retailers. (VIEW LINK)
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