The stock of Wal-Mart Stores Inc (NYSE:WMT) closed at $76.89 gaining 0.97% in yesterday’s trading session. This top provider needs to pump up its brand, widen its foot print by drawing in a fresh group of shoppers as well as enhance its reach. That is the only way it will take the sector by storm the same way Amazon.com, Inc (NASDAQ:AMZN) has done. In the previous month, Amazon had made an announcement regarding its bid for Whole Foods Market, Inc (NASDAQ:WFM).
Over the years, Walmart has continued to prove its dedication to exercising considerable pricing pressure over its wide array of vendors. It goes without saying that indeed the company is pretty good when it comes to showcasing a high level competence in distribution. It is something that the rest of retail needs to emulate in order to make it in the industry according to Thestreet.
One analyst while speaking to news reporters said, “The automotive after-market [which sells vehicle parts, chemicals, equipment, and accessories after the owner buys the vehicle] is unique, and delivery is much more important than in other areas. People need their cars, so parts delivery has to not only be the same day, but within a matter of hours, and it requires bricks-and-mortar stores and distribution networks like Walmart.”
John Birk, another analyst that has had a close eye in market proceedings has given his view on the matter. He thinks that the acquisition of Advance Auto Parts is something that seems to make some sense. Wal-Mart has been trying its level best to drive as much volume as possible through the system.
According to him, the ability of any company to garner traffic determines how fast it can rise to become an industry leader. But this is not the only thing that matters. There are other things that need to be done to make it in an industry characterized by wild competition.
Beating Amazon at its own game might seem a bit far-fetched by a lot of people that understand the company in a much deeper way. However, with dedication, Walmart might just make it.