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Walmart: 'Going to a very dark place'

Walmart: 'Going to a very dark place'
MGN-Online
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POSTED: Friday, August 1, 2014 - 6:30am

UPDATED: Monday, August 4, 2014 - 11:39am

Goldman-Sachs downgraded Walmart's stock to 'Neutral"

Walmart may not go the way of RadioShack any time soon. But Goldman Sachs says that customers are abandoning the big-box pioneer in droves.

On Tuesday, the investment bank downgraded Walmart's stock to 'Neutral,' saying that big-box stores are losing out to online retailers and stores with more focused inventories.

With $115 billion in annual sales, Walmart isn't quite going out of business, but the retailer has seen sales slip for five straight quarters. Online shopping is clearly hurting the store, as more customers turn to Amazon and other merchants for everyday items such as hardware and groceries.

E-commerce is making Walmart's vast breadth of merchandise less appealing to shoppers. Instead, customers are looking for better deals on a more narrow assortment of goods available at stores like Costco and dollar stores The bank upgraded Costco's stock to Buy.

Goldman noted that Amazon's move into grocery sales is the biggest threat facing Walmart and a risk to Costco.

Despite the bank's pessimism about big-box retailers, maintained a 'Buy" rating on Target.
 

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I worked for them from 2000 to 2009. Wait until their stockholders and the SEC find out the truth about Walmarts earnings reports. The entire company is afflicted by a malignant narcissism from the top down. There is a culture of corruption that permeates their management from top to bottom. What happened at Enron is nothing compared to how these people operate. One day you'll all find out just how accurate my claims are.

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