Walmart Drops “Stores” from Its Name
Walmart is changing
Just when investors were going crazy over e-commerce players taking over retail and they became skeptical on the prospects of the brick and mortar operators, Walmart (WMT) turned up with its best financial year in decades. It had a strong financial performance and share price movement.
Walmart is changing fast. It isn’t just a store operator anymore. It’s a key e-commerce player in the US and the world’s largest retailer (XRT). Walmart has strong digital and e-commerce capabilities. To reflect the shift, Walmart announced that it’s changing its name to Walmart Inc. from Walmart Stores Inc. The change will be effective on February 1, 2018.
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With consumers shifting toward online shopping, Walmart strengthened its digital business. The company’s digital initiatives bode well for consumers. Walmart rolled out numerous customer-friendly initiatives that save time and money. The initiatives are reflected in its bulging online sales. How much more could Walmart stock rise? Will Walmart sustain its growth momentum in fiscal 2019?
In this series, we’ll discuss Walmart’s YTD (year-to-date) performance and its outlook for next year.
Walmart’s stock performance
Walmart is having a great year in terms of its stock price movement. Currently, it’s trading at record levels. Walmart closed at $97.28 on December 6, 2017—up ~40.7% on a YTD basis. Walmart outperformed its peers. Costco (COST) stock rose 21.7% during the same period. Meanwhile, Target (TGT) stock has fallen 15.9% since the beginning of this year. The S&P 500 (SPX) has risen 17.4% on a YTD basis.