The stock of Wal-Mart Stores Inc (NYSE:WMT) closed at $86.62 gaining 0.60% in yesterday’s trading session. This retailer has discovered a new way for it to make its services more appealing to millennial shoppers. A number of analysts that have been following on the retailer’s progress have indicated that its reputation has improved significantly among this key demographic.
On Tuesday, this company held an investor event where a number of issues were discussed. A large number of analysts were in alignment with the fact that the company’s recent moves were succeeding at creating a positive impression on the young shoppers.
The company’s spokesperson opined, “The brand perception of Wal-Mart has improved significantly, which we believe will help bring in higher value brands and more millennial shoppers. Following the meeting, we are now more convinced than ever that Wal-Mart is on the correct path to secure its position in the retail landscape of tomorrow.”
There is indeed great need for Wal-Mart to strike an expert balance in its general pricing and the goal will be to limit gross margin upside versus potential traffic deterioration. Cowen has expressed his satisfaction with the recent pipeline of tests and the omnichannel initiatives.
However, the company runs the risk of overburdening its employees with information and that could in turn negatively impact customer service delivery. The Walmart academies will be entrusted with providing associates with the required tools.
Wal-Mart has been making a lot of changes in the recent times all targeted at helping it forge forward in terms of achieving immense business success. It is being compelled to shift part of its business strategies and the most recent was its decision to stop setting up new stores in the U.S.
In its many years of operation, the company focused on building new and enormous stores in the hope that it would succeed at driving sales a notch higher. But the passage of time is unveiling a different reality. The tactic is slowly losing edge in the e-commerce era and there is need to change strategy.