The largest online seller has increasing competition from the nation’s largest retailer.
The holiday shopping season i.e. the fiscal quarter four for Wal-Mart Stores Inc. received more shoppers to their stores in the US and their online sales also soared 29%. This is a clear indication that Wal-Mart is improving its web services and lowering their prices to better compete against the ecommerce giant Amazon.com Inc. who has built a strong loyalty due to their Prime program that gives two day shipping benefit.
Wal-Mart and many other traditional retails are trying to improve their operations on the web to challenge Amazon.com who proudly had acquired almost 33% of US online sales in the previous year. Wal-Mart jumped to second place last year pushing EBay Inc. back with 7.8% online sales. This rubric still falls short of their global sales as it’s just 3% of that. Amazon.com, on the other hand, has $94 Billion in their global net product sales.
A lot of retailers faced tough odds this holiday season as they underscored all the changes that they needed to make. Even Macy’s reported sluggish sales for another quarter, even after them scrambling for a lot of new ways to attract shoppers and increase their online services. Even Wal-Mart’s main rival, Target Corp. warned of weak holiday season sales. The final figures for their sales would be reported next week.
Wal-Mart has changed their online shopping programs and also brought up some companies with good online strength. Their aggressive effort to harness their power of their huge number of stores is helping their online business a lot.
Wal-Mart, last year, bought Jet.com aiming to attract younger customers who are more affluent.
It has also bought ShoeBuy.com, the online footwear retailer, and Moosejaw, the outdoor and gear seller for $70 Million and $51 Million respectively. They also increased their stake in China’s No. 2 Ecommerce site, JD.com last year.
Wal-Mart is looking to accelerate integration between Jet.com and Walmart.com taking advantage of their scale in areas like sharing their product selection and shipping.
Wal-Mart is also offering free two day shipping program on orders that are placed online on their most popular items with a purchase order of $35 or above to compete with Amazon’s prime program. The subscription of Amazon Prime for a year costs $99 with services like streaming video and music included.
According to FactSet analysts, their earnings per share is expected to be $1.28 on revenue of $131.13 Billion.
The company, on the other hand, has forecasted their EPS from 90 to 1 dollar for Q1 and 4.2 to 4.4 dollars for the entire year. Their shares rose by 3% to $71.45 on Tuesday.