The end of Walmart's giant discount stores? That's what one astute industry observer predicts. It may seem far-fetched, but John Rand thinks smaller Walmart stores will replace them. Here's why he may be right:
Walmart's numbers have been stagnating in the U.S. lately, but overseas in emerging markets, the world's biggest retailer has been coming on strong. Its stock has been hovering in the low $50s -- and you won't believe where Trefis puts its estimate for the real value of the low-price giant.
Since the Great Recession began, Walmart has been facing heavy competition from dollar stores. In response, it recently opened the first of many Walmart Express stores. Stock analysis firm Trefis explores what effect these new smaller stores will have on the future value of the world's largest retailer.
Walmart is launching an online delivery service -- "Walmart To Go" -- that will allow customers to buy food, medicine and other household goods online and have them delivered to their doors. Trefis takes a look at what this new growth opportunity means for the world's largest retailer.
The giant retailer's profits grew 9% in the third quarter to $3.4 billion. But revenue disappointed analysts, mainly due to a small decline in U.S. sales. Still, the company raised its future earnings guidance.
Sales and earnings at the world's largest retailer rose in the second quarter, in line with expectations. And even though it expects customers to remain cautious about shopping, Walmart hiked its full-year guidance.
