Walmart: 3 initiatives the retail giant is taking - Yahoo Finance

Walmart (WMT) has earned bullish sentiment from HSBC analysts, who express confidence in the retail giant's prospects. The firm has raised its price target on Walmart's stock from $70 to $81 while simultaneously reaffirming its Buy rating. HSBC commends the company's ability to rethink business strategies that fail to achieve desired results, demonstrating a commitment to boosting operational efficiency.

Yahoo Finance's Brooke DiPalma breaks down the details, discussing three key initiatives the company is undergoing to enhance the company.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith

Video Transcript

Hs BC is raising its price target on Walmart from $70 to $81.

It's also maintaining its by rating the stock not doing a heck of a lot today.

It's down about a half of 1%.

But basically this note is in reaction to the company shareholder meeting, uh which it held last week and among other things, um basically, the analyst here is talking about a sort of a more nimble Walmart that it is expressing willing to exit businesses that aren't working, including that um health clinic business.

It said it's gonna close them all after not working um for more than five years.

So that's one of the things that they were pointing to um as a potential catalyst.

Yeah, I mean, there was a lot of it was interesting.

I mean, just in reaction to that meeting, a lot of analysts in the street were, were sounding a lot of positive tones.

JP Morgan for example, upgrade to overweight off that Walmart is winning over Wall Street.

So let's continue that chat.

But the shopping giant will need results from its ecommerce business to maintain its position.

Brooke Dipalma who recently went to Walmart's annual meeting is here to break down how it plans to turn its ecommerce business profitable.

Yeah, Walmart executives did note to investors that it thinks that it could turn the e commerce business profitable in the next 1 to 2 years.

And there's three ways, some of the many ways that they plan to do this.

The three key ways that we're identifying here is Walmart needs to play catch up when it comes to the A I game.

Amazon has been so ahead of that.

So earlier this year, Walmart did announce plans to use gen A I to personalize search.

So for example, you type in a birthday party, the Walmart will then show you candles, decorations and cards and Walmart executives really saying here that this will allow them to get customers what they want when they want it.

And one executive telling Yahoo Finance that he believes that Wal Mart has the best data for A I models because of both in store and online business.

Now that brings us to the next point, it plans to leverage its physical store locations.

CEO Doug mcmillan did tell you who finance that omni actually is the preferred offer for customers.

They like going in stores, but they also like going online and e commerce has been a booming business for Walmart, but it hasn't necessarily come at the expense of in store shopping.

We've seen growth there as well.

Walmart executives touting the fact that around 90% of Americans live within 10 miles of a Walmart location.

That's more than target and more than Costco and also said that it can offer and charge customers for express one hour or three hour delivery using that store presence.

The last opportunity here guys is a new opportunity that it's been growing lately.

That's their Walmart Connect business.

It's their ad business.

And what we know is that last quarter, Walmart Connect uh saw sales jumped 26%.

So now Walmart is really implementing those sponsored video ads at the top of those results uh online.

They're also using in store advertisements and off site ads on tiktok as well as Disney Plus, I have to say that point number two there about leveraging the physical stores.

I've been hearing that song for a long time for that.

They've been playing for a while.

We're gonna leverage the physical stores.

Uh They haven't done it so far.

So I pick up delivery is one way that's really driving ecommerce growth.

And when I asked Doug MC Bill and the CEO there, if you know, they plan to continue to grow stores, he actually noted that they plan to increase store locations where people have moved to.

So they're gonna reassess their real estate strategy and take a look there.

They certainly want to be near every single American and still are they gonna catch up with Amazon?

Not quite yet?

Yeah, they're still pretty far from where Amazon is.

You take a look.

Last year, Amazon brought in $47 billion in ad revenue, Walmart only 3.4 billion so a long ways away.

But experts telling me that Walmart needs to work on awareness first.

Not many people know that they have this quick, fast online delivery service.

Not many people know about the Walmart plus subscription.

So really marketing advertising that could be a key game changer for Walmart.

But they are ahead of where maybe Target and Costco are when it comes to their ecommerce growth.

Yeah, Costco has not emphasized that for sure.

Not at all.

Really?

Thanks a lot, Brooke.

Appreciate it.

Adblock test (Why?)

Read Again https://news.google.com/rss/articles/CBMiUWh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vdmlkZW8vd2FsbWFydC0zLWluaXRpYXRpdmVzLXJldGFpbC1naWFudC0yMDUyMTIzMTMuaHRtbNIBAA?oc=5

Bagikan Berita Ini