Walmart Black Friday 2015 In Jeopardy?

Posted: Oct 15 2015, 6:37am CDT | by , in News | Black Friday 2018


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Walmart Black Friday 2015 in Jeopardy?

Investors sent Walmart's stock down 10%, because of low earnings outlook due to heavy investments in a three year plan. What does this mean for Walmart's Black Friday and Holiday sales?

Walmart announced yesterday, a plan for the next three years to turn things around. This plan means low profits in the next two years.

Walmart is investing heavily in several areas to fight off the competition that is coming from different sides. Grocery chains eat away on Walmart's important grocery business and Amazon keeps killing Walmart in e-commerce.

Walmart's shares dropped by an historic 10% yesterday. The biggest drop since the 80s. Walmart CEO Doug McMillion reacted in a blog post to the steep loss in stock value.

"The reaction by the market – while not what we’d hoped – was not entirely surprising. We're making significant investments in our people and technology. These investments are critical to our current and future success as a company. Simply put, it’s the right thing to do.

For the first time we shared a three-year growth plan that includes financial metrics and goals. We project our sales growth over the next three years will be $45 – 60 billion. Think about that. That’s like adding last year’s combined annual revenues of Netflix, eBay, Whole Foods, and Starbucks to our top line.

Our growth plan is the road-map we will follow to win through FY19."

Investors are still trying to digest what the announcement of the 3-year plan will mean for the Walmart stock over the next three years.

Consumers are concerned with what they can expect from Walmart stores on Black Friday and throughout the Holiday Shopping season.

On Walmart's Black Friday 2015 page, the giant retailer promises incredible Black Friday deals. "On Black Friday 2015 at Walmart, you'll find an enormous selection of Black Friday specials on the season's most-wanted Christmas gifts. Expect great Black Friday deals on the stuff everyone will be wishing for. We'll be selecting popular items that are sure to please anyone on your list, at low Black Friday prices you're going to love. Our Black Friday deals are some of the year's best shopping values, so be sure to shop and save during Walmart Black Friday 2015. "

This does not sound too confident. Walmart has a leading role on Black Friday. They have been leading the pace in terms of store opening schedule and deals. The company also changed the Black Friday experience for shoppers with the introduction of the 1-Hour guarantee door-buster deals.

The Walmart Black Friday 2015 ad is again the most anticipated Black Friday ad and we already see shoppers search for the ad.

Walmart is under pressure to deliver a great Black Friday sale, but this might not happen as the company is busy working on the future.

Amazon will gladly take the leading position for online Black Friday. Amazon already warmed itself up in July with Prime Day, breaking the order per second record of last year's Black Friday.

In the brick-and-mortar market Walmart has to fend off Target, Best Buy and others to keep the attention of Black Friday shoppers.

We will follow Walmart closely as they reveal their Black Friday 2015 plans in the coming weeks. Last year the Walmart Black Friday ad dropped on November 12. This is less than one month from today.

Walmart can already show off some examples how the future looks like. The first redesigned Walmart Supercenter opened in Rogers, Arkansas.

Additionally Walmart works on making their network of Neighborhood markets more attractive.

Walmart Neighborhood stores

Walmart's plan to win back grocery customers starts with fresh produce and private brands. Another focus is to grow the Walmart Pickup Grocery service.

Walmart's investment in its workforce includes a wage increase to $10 and training programs to improve the shopping experience for Walmart customers.

Walmart is already quite happy with the performance of its shopping app. In the investor call yesterday, the retailer highlighted that the app is the 3rd most popular app in retail. 24 million consumers are using the Walmart app each month.

Amazon's app is the top retail app and depending on the kind of app ranking used, Target, Walgreens are among the top four as well.

Walmart's goal needs to be the top spot for its mobile app. The retailer has still 4 times the sales volume of Amazon and mobile apps are not just useful for online sales. We will see where the Walmart app is in three years.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]




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