The stock market recently saw a decline due to low retail numbers...mainly because to a drop in Walmart's seasonal sales. This could possibly be due to consumers finding more value in shopping at specialty stores. At the same time, Walmart has recently ventured into financial institutions with a bank in Mexico to "tap the undeveloped wealth of the area." While it isnt exactly a Swiss bank account, should we take notice and be weary of the Walton's new business venture? Is this the beginning of the end for Walmart and someone's looking for a way out?
2006-11-28 10:26:01 · 2 answers · asked by Playerdre 2 in Business & Finance ➔ Corporations
I don't think it is the beginning of the end for Wal Mart. I think one of the reasons Wal Mart has been so successful is that they redefine their market and their product offering periodically. I don't particularly like Wal Mart because they do tend to be pretty bad for local small businesses, and I don't shop there, but I do think they are pretty good at seeing where they can diversify and sell new products to existing or new customers. Lots of companies do this--- look at Microsoft; they're now venturing into security products even though that's never been their ballpark, not because Windows is going anywhere, just because it's another opportunity to build business.
2006-11-28 10:38:51 · answer #1 · answered by dcgirl 7 · 1⤊ 0⤋
It depends on what the market is looking at. Walmart was one of the few major retailers that started their holiday shopping season targetting the Xmas holidays in October. While other retailers have really been offering sales after Thanksgiving, Walmart has been at it this year for much longer.
Walmart is simply diversifying its portfolio, not solely relying on merchandising for its revenues.
2006-12-04 08:28:49 · answer #2 · answered by mktgurl 4 · 0⤊ 0⤋