Once the undisputed heavyweight champion of the retail industry, Wal-Mart Stores Inc. now faces a struggle to survive as its “entire business model is crumbling,” Business Insider points out.
Wal-Mart is under pressure from investors to trim costs after forecasting this week that earnings will decrease 6 percent to 12 percent next year. Sales aren’t growing fast enough to offset the billions of dollars that Wal-Mart is spending on higher wages for its workers and improvements to its website. The outlook sent the shares on their worst one-day decline since 1988.
Wal-Mart faces tough competition on multiple fronts, from the relentless expansion of online leader Amazon.com Inc to dollar stores and supermarkets fighting for a piece of its grocery business. Its international operations are also under pressure with a stronger dollar eating into sales, Reuters reported.
“The deterioration of Walton's pioneering business model has been playing out for some time in Wal-Mart's numbers,” the Street.com points out, bluntly declaring that Wal-Mart’s “entire business model is being smashed to pieces.”
The chain may look to shutter some of its massive U.S. stores and exit poor-performing markets overseas to help revive growth after the retailer warned of an unprecedented decline in earnings next year.
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13 comments:
I see a rise in the mom and pops stores recently. I understand they are doing well. I hate to go to walmart anymore , stressful for parking , shopping , bathrooms , cashiers etc..
When I say mom and pops , I mean all stores that specialize also.
Good news. Could not have happened to a better company.
Poor customer service, and fewer checkout registers make it always a bad experience whenever I have had to go there because there was no where else to go for a certain item. Haven't seen on yet that has ever done anything positive for a community.
The Fruitland WalMart is a joke. The manager says they do not have enough labor hours because of the reduced volume of sales. Consequently there are numerous stock outs on the shelves. But the stock is actually in the back room! You can't sell it if it is not where the customer can buy it. This causes the drop in volume , customers get disgusted and go to other stores.This is not rocket science. STOCK THE DAMN SHELVES! You never see the manager stocking shelves, is he too important? Be a leader, show the people you care.
I dread the thought of more empty buildings.
Better prices at Rose's and Dollar General, and much easier for elderly without parking hassles and having to walk around stores that are way too big. I'll pay more not to have to go to Walmart zoos.
Good. Walmart sucks.They don't pay employees enough money to get of government assistance. Customer service SUCKs. And, large population of illegal immigrants go to Walmart. Furthermore, their prices are extremely high. I hope they bankrupt
I have no problem with walmart existing. With that being said I go there probably 2-3 times a year for a few specific things that other stores do not carry. I hate shopping at walmart. Poor customer service, long lines, overly crowded, obnoxious customers (not all the time but ocean city in the summer is horrible) keep me from being a regular customer. Honestly I wouldn't miss it if it didn't exist.
Went to Walmart in seaford yesterday. Spent $250.00 on ammo they have the best prices and good supply. Got no problem with Walmart.
who has money to shop, even Walmart. looking for deals. bartering, buying used but not abused, growing food, etc...
The demise of Walmart is overdue. The favorable prices they received because of high volume discounts closed locally owned community establishes. It has been sad and ugly to see the breakdown of local communities. Good riddance Walmart!
What gets me is that food prices across the board are still high even though fuel has dropped drastically. Thet can't used that as an excuse any longer.
Every one blames Walmart for the loss of the mom and pops but those stores and downtowns were going away long before Walmart came to the shore. The only thing Walmart killed was Sears, Penneys, Kmart and the like. Just as Mcdonalds and the like killed off the local diners. Now the business cycle is changing again and retail is in transition. Just like the climate. Nothing ever stays the same.
The media went after the only affordable store around and now we will pay the price.
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