In an attempt to challenge Amazon’s (AMZN) Marketplace, discount retail giant Wal-Mart Stores, Inc. (WMT) wants to strengthen its online third-party exchange place.
Wal-Mart already operates its own version of Amazon’s third party web exchange, where vendors sell a variety of new and used goods, also called Marketplace. However, Wal-Mart is still focused in pouring resources into its brick and mortar operations; the company plans to open 130 supercenters this year.
As the retail landscape changes, Wal-Mart plans on driving capital to the online market to compete with the growing retail giant Amazon. While many analysts and execs at Wal-Mart are worried that a strong presence on the web might drive traffic away from the physical stores, they say this cannibalization is better than customers leaving Wal-Mart altogether for Amazon’s service.
Wal-Mart will continue to keep a close eye on the Seattle-based Amazon; the two companies are on a collision course for retail supremacy. Right now though, Wal-Mart execs want to see how they can battle Amazon’s Marketplace, which they consider its “number one weapon.”
Wal-Mart shares were up slightly during Tuesday morning trading. The stock is ip +23.43% over the past year.
The Bottom Line
Shares of Wal-Mart Stores (WMT) have a dividend yield of 2.57% based on last night’s closing price of $73.26 and the company’s annualized dividend payout of $1.88 per share.
Wal-Mart Stores, Inc. (WMT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.