Walmart Inc (NYSE: WMT) has announced plans to invest $14 billion to become “the primary destination for customers.”
What Happened: The retail giant said in its fourth-quarter announcement that it was going to spend $14 billion on enhancements, including in automation, supply chain and other areas that might boost long-term sales.
Walmart CEO Doug McMillon also underlined how important the further development of e-commerce is.
“We weren’t the first place you go to buy products online. We’re trying to change that, obviously,” he said, in a possible reference to Amazon Inc. (NASDAQ: AMZN).
Why It Matters: The company reported 69% growth in its e-commerce business in the fourth quarter and said it expected $100 billion in e-commerce revenue in the next couple of years.
McMillon also said that developing sales online is not an easy thing to do right away: “You’ve got to have assortment, you’ve got to have the price, you’ve got to provide service, you’ve got to deliver when you’re supposed to deliver. … And it takes some time to build those kinds of capabilities.”
Image: Walmart Instagram
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