The Real Reason Walmart Is Closing Down Stores
Published at : 23 Dec 2020
For a long time, Walmart seemed like the unstoppable juggernaut of the retail world, but things haven't been looking so great for the retail giant. In fact, they just announced another round of closures. So what's going on with Walmart, and will it get better or worse?
In 2016, Walmart purchased Jet.com and began aggressively expanding their online presence. Why? Because Amazon, that's why. The online retail giant was figuratively eating Walmart's lunch, so Walmart had to shift gears from a brick-and-mortar retail word to a digital one.
CEO Doug McMillon told Business Insider that the resulting downturn in profits as they refocused their business was, quote, "planned and expected." But it hasn't been all sunshine and roses. Industry experts say that Walmart has had issues figuring out how much to keep in stock to satisfy both online and in-store orders, often resulting in physical locations being either overstocked with unwanted merchandise or understocked on key goods. And considering the whole point of going to Walmart is to get all the vital supplies in one place, not having those items when customers need them is a big problem.
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#Walmart #BigBoxStores #Retail
The Amazon factor | 0:16
They've got a bad image | 1:19
Increased tariffs are lowering profits | 1:48
Format error | 2:22
If you can't beat 'em | 3:11