Walmart’s E-Commerce Flatlines
According to reports on Wall Street and from other financial experts, monolithic Walmart is due to take a heavy loss they year in their e-commerce segment — probably in excess of one billion dollars. While a turnaround this summer and fall could upend that forecast, there appears nothing in the immediate future of the Arkansas-based big box giant to give investors and bankers even a glimmer of hope in a miraculous turnaround.
As a sign of the giant company’s awareness of the coming fiscal debacle, the company has announced it plans on selling its women’s apparel retailer within the next six month. Modcloth is expected to fetch little more than half of what Walmart originally paid for the retailer last year. Experts say this will only add to Walmart’s business model problems in 2020 and beyond.
Anonymous sources within Walmart itself have been leaking reports to financial journalists that the top management staff are becoming increasingly unhappy and disaffected with the company’s losses and lackluster sales performance in many of their anchor stores in the Midwest. The tariff wars the current administration is waging with China and India mean that many of Walmart’s best-selling items are going to priced out of reach of many customers, unless action is taken to line up new vendors in countries like Vietnam and the Philippines.