After shutting down 269 stores, laying off thousand of employees and strengthening of US dollar, Walmart is not expecting any significant sales growth in the coming year.
The retail giant revealed it in October that it is expecting a sales growth of 3-4 per cent for coming three years. However, in its fourth-quarter earnings results, Walmart had a less optimistic prediction for fiscal 2017.
Retail rivals are not celebrating the Walmart’s struggles as they can foresee the swift change in the retail landscape where only a few can survive.
Just like Walmart, department giant Macy’s is also planning to shut 40 stores in early 2016. It has also been cited that growth of online retailers like Amazon has cut down the shopping trips of the customers. The mall traffic has decreased and big box retailers are also dropping.
As global e-commerce sales of Walmart grew 12 per cent last year, it is planning to focus on building a digital relationship with its customer and expanding online grocery. However, boom in online sales will in turn reduce the number of Walmart stores and employees.