While the rest of retail withers away, Wal-Mart is taking off. According to CNBC, the company is set for a:
20 billion share repurchase program to replace its existing plan, announced in October 2015. The new authorization will be used over a two-year period,
The move cements Wal-Mart’s position at the top of the food chain. While the rest of retail has suffered (Sears, Toys R’ Us, JC Penney, etc.) the retail giant has reinvented the way it does business.
Reuters reports that the company is also aiming for a 40% increase in e-commerce sales, which drove stock prices up over 4.5%.
“We are going to lean into places like technology, e-commerce, international stores,” Wal-Mart Chief Financial Officer Brett Biggs,
Of all of the major retailers, Wal-Mart has been one of the most efficient in terms of adapting to the changing market place. Both Reuters and CNBC are clear that the move is a direct response to Amazon’s infringement on the retail sector as a whole.
While other brick-and-mortar retailers such as Costco have announced that they will explore online sales, Wal-Mart is truly diving into the deep end with this new forecast.
Now look like a fantastic time to start looking at Wal-Mart as a potential investment idea. The company seems poised for the future and CFO Brett Biggs said:
“Our financial position is strong, which allows us to invest in the business while returning significant cash to shareholders,”
The fiscal strength and strong strategic vision of the company could see it continue its success for some time.
To read CNBC’s article on Wal-Mart’s announcement, click here.
To read Reuters’ article on Wal-Mart’s announcement, click here.
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