Was Wall Street right to spank Walmart?

Last week’s Walmart presentation to analysts was not well received. The CEO (Doug McMillon) got blame for the short-term costs of the long-term improvements that Wall Street has been clamoring for. One commentator questioned whether Walmart is now “too big to fix,” and I responded on RetailWire:

To say that Walmart is “just too big” is like saying that Apple or InBev are “just too big.” Scale matters, but so does the execution of a successful strategy. It’s ironic that yesterday’s stock-price meltdown is caused by the rollout of the very strategy that Walmart investors have been asking for: Cleaner stores, better customer service and a more robust omnichannel model.

Long-term investors need to judge Walmart not on the results in a given quarter (when most general merchandise chains are lagging) but on the outcomes of investment spending in three to five years. Judge Walmart by its long-term market share gains and operating efficiencies, not by yesterday’s news.

Advertisements

0 Responses to “Was Wall Street right to spank Walmart?”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s





%d bloggers like this: