Friday, October 18, 2013

Is Wal-Mart Heading for Disaster? (WMT)

Is Wal-Mart Heading for Disaster? (WMT)

Wal-Mart (NYSE: WMT ) was once the shining example of how to run a growing U.S. retail chain efficiently and profitably. Sam Walton built stores in cities and towns neglected by big-box stores, and once the company built the scale needed, it was able to squeeze suppliers to provide better prices and different products than its competitors. Combine that with a superior inventory management and distribution system, and you have a market-crushing company that beat Kmart, Target (NYSE: TGT ) , and others to dominate discount stores.

This strategy worked for more than four decades, but nothing works forever, and cracks have recently formed in Wal-Mart's foundation

One can hope :)

No comments: