Wal-Mart Stores, Inc.NYSE
Today, 9:47 AM
- There's some mind-blowing numbers out on e-commerce as part of the 2016 Adobe holiday season forecast.
- E-commerce sales are expected to increase 11% this year to $91.6B. Though the pace is slower than what was seen in some recent years, it still triples the overall growth rate in retail.
- Cyber Monday is set to be the largest online shopping day of all time, with $3.36B in sales anticipated.
- Large retailers are seen outpacing smaller retailers by a wide margin, 17% growth vs. 7% growth. That means more market share for Amazon (NASDAQ:AMZN), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Best (NYSE:BBY) and Staples (NASDAQ:SPLS) in comparison to chains which already have a harder time leveraging their shipping costs.
- Adobe says hot gifts this year will include virtual reality devices, Pokemon, Barbie, Lego, Hot Wheels and Frozen toys.
- A stretching out of the holiday season from early October until past Christmas could help FedEx (NYSE:FDX) and UPS (NYSE:UPS) manage the logistics more efficiently.
- Related stocks: SNE, HAS, MAT, NILE, EBAY, DIS.
- Related ETFs: IBUY, XRT.
- Full Adobe report
Fri, Oct. 21, 10:28 AM
- Wal-Mart (WMT -1%) announces it made a $50M strategic investment in New Dada.
- The company notes New Dada is China’s largest local on-demand logistics and grocery O2O e-commerce platform.
- The investment extends on Walmart’s agreement with JD.com to offer two-hour delivery on groceries ordered from Walmart stores through the JD Daojia Dada app.
- “Today’s exciting announcement brings together the global retail leader and China’s largest grocery delivery network to create a unique new shopping experience,” says New Dada CEO Philip Kuai.
- Previously: Wal-Mart gets busy on JD.com (Oct. 20)
- Source: Press Release
Thu, Oct. 20, 3:13 PM
- Wal-Mart (WMT -0.2%) is already some pretty significant moves on JD.com (NASDAQ:JD), just a few months after making an investment in the Chinese direct online seller.
- The company is starting a Sam's Club store and a separate online store for imported products on JD.
- Grocery deliveries for orders placed through JD Daojia are also available for customers of 20 different Wal-Mart stores in China.
- Wal-Mart holds a stake in JD.com of about 10.8%.
Tue, Oct. 18, 3:51 PM| Tue, Oct. 18, 3:51 PM | 10 Comments
Sat, Oct. 15, 11:43 AM
- E-commerce sales during the holiday season are forecast to increase 17.2% this year to $94.71B, which represents a record 10.2% of all retail sales for the period.
- The +17% growth also represents the fastest pace for holiday e-commerce sales since 2011.
- Impressively, Amazon is expected to grow its holiday e-commerce market share above the 25% it took down last year.
- Outside of Amazon, investors can bet on online retail broadly through the Amplify Online Retail ETF (NASDAQ:IBUY). IBUY aims to match the price and yield performance of the EQM Online Retail Index.
- The IBUY is up 8% since launching in April, compared to a 5% drop for the S&P Retail ETF (NYSEARCA:XRT).
- The top ten holdings of the Amplify Online Retail ETF are Etsy (NASDAQ:ETSY), Grubhub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), eBAY (NASDAQ:EBAY), RetailMeNot (NASDAQ:SALE), Copart (NASDAQ:CPRT), 1-800-Flowers.com (NASDAQ:FLWS), Amazon (NASDAQ:AMZN), Stamps.com (NASDAQ:STMP), and NutriSystem (NASDAQ:NTRI).
- This year's e-commerce boom will also be a net positive for shippers FedEx (NYSE:FDX) and UPS (NYSE:UPS), despite the increasing logistical challenges amid a higher mix of large packages. There's also Wal-Mart (NYSE:WMT) to consider after the company made a dramatic commitment to invest more in e-commerce during an investor meeting a few weeks ago.
- Previously: Winners and losers from the retail sales report (Oct. 14)
Fri, Oct. 14, 9:05 AM
- Retail sales increased 2.7% Y/Y and 0.6% M/M in September on broad gains across categories. The sales totals for August were also nudged slightly higher.
- Sales from nonstore retailers like Amazon (NASDAQ:AMZN) were up 10.6% Y/Y to once again account for a higher percentage of overall sales.
- The building material & garden equipment category showed a 1.4% M/M and 5.6% Y/Y gain which bodes well for Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Department stores (DDS, SHLD, JCP, M, JWN) lagged again as sales fell 0.7% M/M and 6.4% Y/Y, while furniture and home furnishing stores (HVT, WSM, KIRK, RH, BBBY) outpaced the broad averages in the sector.
- Restaurant sales (NASDAQ:BITE) showed a nice jump from August, although the breakdown between large publicly-traded chains and independent restaurants isn't broken down.
- The early take from retail analysts is that the overall tone from the report is ever-so-slightly positive for Wal-Mart (NYSE:WMT) and Target (NYSE:TGT).
- Previously: Retail sales track higher as expected (Oct. 14)
Sat, Oct. 8, 9:09 AM
- Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
- "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
- Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
- It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
- Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
- Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Thu, Oct. 6, 9:40 AM
- Wal-Mart (NYSE:WMT) management is talking quite a bit about e-commerce during its Investment Community presentation.
- While that's not a surprise, there's still an underlying tone that the company's strategy is to ride out the extra costs of tech and e-commerce investments in order to adapt and evolve.
- "We’re moving with speed to position the company to win the future of retail," noted CEO Doug McMillon. He also said point blank that the world's largest retailer is going to look more like an e-commerce company over time. That's a stipulation that may have been inconceivable three or four years ago.
- Keeping with the e-commerce theme, guidance on store openings for the next two years was on the light side.
- Naturally, the $3B acquisition of Jet.com was a talking point
- The retailer also disclosed in a SEC filing yesterday that it has increased its position in JD.com to 10.8% of the shares that don't have voting power.
- Shares of Wal-Mart are down 2.69% in early trading after the company's guidance came in below expectations.
- The all-in bet by Wal-Mart on e-commerce has implications for other online sellers such as Target (NYSE:TGT), Staples (NASDAQ:SPLS), Best Buy (NYSE:BBY) and (of course) Amazon (NASDAQ:AMZN).
- Previously: Wal-Mart execs in the spotlight at investment meeting (Oct. 6)
Thu, Oct. 6, 7:48 AM
- Wal-Mart (NYSE:WMT) backs prior guidance ahead of its Investment Community Meeting today. FY17 EPS of $4.15 to $4.35 is expected vs. $4.33 consensus.
- The company also highlights a number of areas in which it plans to sharpen its focus, including expense management, e-commerce growth, and stability in key international markets.
- Looking ahead, Wal-Mart sees capex spending of $11.0B in both FY17 and FY18. The company projects store unit growth of 331 to 351 in FY17 and 249 to 279 in FY18.
- The actual presentation by Wal-Mart execs starts at 7:00 AM Eastern. Updates will be posted on Seeking Alpha News.
- Shares of Wal-Mart are down 0.56% in premarket action.
Thu, Oct. 6, 2:18 AM
- Looking to gain an even more dominant position in retail, Wal-Mart (NYSE:WMT) is accelerating its investment in e-commerce.
- The company is on track to double the number of warehouses dedicated to online sales by the end of 2016 and has installed technology that for the first time puts them on par with Amazon's (NASDAQ:AMZN) robot-staffed facilities, according to supply-chain consultants.
- More highlights will likely be given at Wal-Mart's annual investor conference later today.
Mon, Oct. 3, 10:47 AM
- September monthly performance was: +0.2%
- 52-week performance vs. the S&P 500 is: +7%
- $0.21 in dividends were paid in September
- Top 10 Holdings as of 8/31/2016: AT&T Inc (T): 5.38068%, Exxon Mobil Corp (XOM): 5.11766%, Verizon Communications Inc (VZ): 4.15514%, Chevron Corp (CVX): 3.62745%, General Electric Co (GE): 3.46929%, Procter & Gamble Co (PG): 3.13406%, Wal-Mart Stores Inc (WMT): 2.92688%, Pfizer Inc (PFE): 2.90452%, Philip Morris International Inc (PM): 2.83223%, Merck & Co Inc (MRK): 2.39541%
Wed, Sep. 28, 9:35 AM
- Buckingham Research warns on a drop in guidance from Wal-Mart (WMT -0.2%) at its upcoming Investment Community Meeting event.
- The presentation from Wal-Mart management in front of analysts is set for October 6. The impact of the recent Jet.com acquisition and speculation of a Flipkart investment are other key talking points ahead of the meeting.
- On the EPS front, there's been some hints from other retailers of steep pressure being applied from Bentonville on grocery pricing, on top of the continued IT spending and labor cost inflation.
- Seeking Alpha will cover the Wal-Mart presentation as it happens.
- Shares of WMT are rated at Neutral by Bucky with a $70 price target.
Tue, Sep. 27, 2:13 PM
- Wal-Mart (WMT +0.9%) is on the hunt for a stake in Flipkart, sources tell the Financial Times.
- Flipkart is one of the e-commerce players in India large enough to take on Amazon.
- Wal-Mart's interest in the Indian online powerhouse comes only a few months after the company's acquisition of Jet.com in another strategic counterpunch against its Seattle rival.
Fri, Sep. 23, 8:30 AM
- Barclays has upgraded Wal-Mart (NYSE:WMT) to Overweight from Equal Weight, saying the retailer is in the early stage of a real turnaround.
- "We believe the tide is turning. Investments in labor appear to be resonating with the employees and therefore the customers, the quality of the product offering is improving, and service and execution has improved," analyst Karen Short wrote in a research note. "WMT's recent initiatives are driving a turnaround and believe once momentum gains steam - retailers of WMT's size and scale rarely lose the momentum."
- WMT +0.8% premarket
Thu, Sep. 22, 7:21 AM| Thu, Sep. 22, 7:21 AM | 5 Comments
Wed, Sep. 21, 10:18 AM
- Wal-Mart (WMT +0.4%) began online grocery pickup in four stores in Minneapolis today, with a fifth outlet due to start the service on October 6.
- The roll-out in Minneapolis is notable with the stores not far from the headquarters of Target (TGT +1.1%).
- 30K Wal-Mart items are eligible for online grocery pickup. The minimum order amount is $30.
- Target decided earlier this year to focus on its Instacart partnership instead of a store pickup service.