Walmart Good Or Bad For America Essay

453 Words2 Pages

Buyers have been shopping more online then in the stores, fewer people were in and out of stores during the holiday season, but more were shopping online. Shoppers that shop online have more time to browse around and look for different things in different store than to have to drive to the store and wait in line. Companies are being affected by this like Wal-Mart, they are struggling as Americans spend more cautiously in the uncertain economy. But Amazon.com has improved as shoppers increasingly by online rather than head to stores. The issue is that people are spending more time and money online than in stores, and it is impacting the big stores like Wal-Mart. It is very surprising to say Wal-Mart is being affect by it since it’s such a big …show more content…

Meanwhile, sales at stores rose just 2.7% to $265.9 billion, according to ShopperTrak. And the number of customers in stores has dropped 14.6%. Toy stores and Wal-Mart stores also expects disappointing results. The world's largest retailer said its fiscal fourth-quarter and full-year adjusted earnings from continuing operations may come in at or slightly below the low end of its prior forecasts. Now Wal-Mart and other stores are focusing on their online websites to try to put all of their products online and involve in the e-commerce world. Since they have noticed that buyers are buying more online than in stores. Since the stores are not making as much sales, they are trying to expand and meet the same expectation to Amazon. Amazon has struggles to balance its operating costs with revenue growth which now the company is considering raising the fee on its Prime membership, which offers free two-day delivery on most items. The service is so popular that Amazon had to suspend accepting Prime members during the holidays because it couldn't process them fast enough. In addition, carriers had trouble delivering orders on time due to unforeseen demand, so Amazon had to issue some gift certificates and rebates, which that is lost on revenue. Now Amazon is trying to balance the items they have and to deliver the order on time and not get overwhelm with all the big orders. Try