Author Topic: WMT - Walmart Inc  (Read 48835 times)

walkie518

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Re: WMT - Walmart Inc
« Reply #160 on: May 15, 2019, 10:59:36 AM »
this seems like the wrong way to address this problem

why wouldn't WMT try to find a way to differentiate rather than compete head-on? 

this lack of imagination likely devolves WMT's business model and continues the OCF shrinkage?

financial statements certainly reflect a decline since bringing Lore on board... sorry to be a downer


The minute Walmart cedes this to Amazon they might as well give up.  They have always competed primarily on price (and to a lesser extent selection and service) driven by their leading edge supply chain and logistics.  My view is that this is them still competing on price - cheaper prices than Amazon and now they match convenience without having to pay $119 for membership.

what I find troubling from WMT's perspective, however, is that when AMZN zigs so too does WMT regardless of relative economic consequences

while WMT stock has appreciated materially over the last couple years, neither jet.com nor Walmart.com is competing with AMZN, network effects of the latter are very visible in cash flow from operations (ok, AMZN has AWS and other businesses that WMT does not)

as per the last 10-Ks, AMZN is now generating 10% more OCF than WMT while WMT is generating 13% less than in 2017

point being that WMT needs some other angle that AMZN doesn't have...find a way to leverage its unused sites to generate economic earnings rather than fight to compete ... if they don't, I hope WMT learned something from Barnes and Noble


longinvestor

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Re: WMT - Walmart Inc
« Reply #161 on: May 15, 2019, 11:57:47 AM »
Sam Walton's retail magic worked in the 20th century, actually dominated. If they follow Walton's blueprint, more reasons to dominate in the 21st. Declining disposable income trends is tailor made for Wal-Mart to continue to dominate. Amazon can be an everything store but Wal-Mart will sell the necessities and some of the "everything" catalog. That should do it. They should take Amazon head on. Good for the consumer!

dwy000

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Re: WMT - Walmart Inc
« Reply #162 on: May 15, 2019, 09:52:53 PM »
this seems like the wrong way to address this problem

why wouldn't WMT try to find a way to differentiate rather than compete head-on? 

this lack of imagination likely devolves WMT's business model and continues the OCF shrinkage?

financial statements certainly reflect a decline since bringing Lore on board... sorry to be a downer


The minute Walmart cedes this to Amazon they might as well give up.  They have always competed primarily on price (and to a lesser extent selection and service) driven by their leading edge supply chain and logistics.  My view is that this is them still competing on price - cheaper prices than Amazon and now they match convenience without having to pay $119 for membership.

what I find troubling from WMT's perspective, however, is that when AMZN zigs so too does WMT regardless of relative economic consequences

while WMT stock has appreciated materially over the last couple years, neither jet.com nor Walmart.com is competing with AMZN, network effects of the latter are very visible in cash flow from operations (ok, AMZN has AWS and other businesses that WMT does not)

as per the last 10-Ks, AMZN is now generating 10% more OCF than WMT while WMT is generating 13% less than in 2017

point being that WMT needs some other angle that AMZN doesn't have...find a way to leverage its unused sites to generate economic earnings rather than fight to compete ... if they don't, I hope WMT learned something from Barnes and Noble
Walmart is the largest retailer in the world. They are competing against a company that the market doesnt require it to make money on retailing (take out AWS and the Amazon OCF isnt good).  They either compete or give up and become Sears. At some point, Amazon needs to get profitable on retailing or investors will push them to separate out AWS because it is being dragged down by a sub profitable retailer. Until then, walmart is still the lowest cost retailer and a competitor nobody wants to face. 

But I dont have a dog in this fight. Just watching and learning.