Displaying items by tag: ecommerce

Friday, 16 March 2018 11:24

Big Scandal Pending for Walmart?

(New York)

Walmart stockholders beware, the company might be in for a big scandal. A whistleblower internal to the company has come out claiming that Walmart is using misleading ecommerce results to make investors believe it is catching up to Amazon. A former director of business development says he was fired after raising concerns at the company about its “overly aggressive push to show meteoric growth in its e-commerce business by any means possible -- even, illegitimate ones.” “Wal-Mart sacrificed and betrayed its founder’s key principles of integrity and honesty, pushing those core values aside in its rush to win the e-commerce war at all costs”, said the whistleblower.


FINSUM: So reading these claims, we do not see any evidence of the claimant saying Walmart actually falsified financial results, only that it used aggressive tactics (such as underpaying vendors), so the damage may not be that bad.

Published in Eq: Large Cap

(New York)

Most of the market’s panic over retail centers on the threat from Amazon and the shift to ecommerce from brick and mortar (admittedly related threats). However, there is more out there to be worried about than just those. In particular, the apparel market is not growing very quickly, as it is losing market share to other areas of consumer spending, such as restaurants, entertainment and wellness. Staffing costs are also rising at the same time as price pressure is growing, putting a strain on margins.


FINSUM: Amazon’s growth in apparel sales is also well-outpacing the overall industry’s growth rate, which means it is already stealing market share on top of these other challenges.

Published in Eq: Large Cap
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