Wal-Mart Stores (WMT)

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[edit] i am a reporter from dow jones and would very much like to talk with you...

Suggestion by Buddie on 2008-07-01 13:17:02

i am a reporter from dow jones and would very much like to talk with you about wal-mart and other retailers would you want to call me 201 938 5106

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[edit] Hi, I think you readers will enjoy having financial statements of Wal Ma...

Suggestion by 217.12.113.153 on 2008-02-17 21:12:58

Hi, I think you readers will enjoy having financial statements of Wal Mart WMT. These numbers are available at http://www.allfactors.com/trading/wal-mart-stores-inc-wmt-historical-financial-statements-in-excel-xls-format and are regularly updated from SEC filings.

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[edit] Great article - you obviously know the retail business in and out.Wal-Ma...

Suggestion by Dseg10 on 2008-02-07 07:07:34

Great article - you obviously know the retail business in and out. Wal-Mart is an interesting animal. Andy Grove, the former CEO of Intel, has named Wal-Mart as a possible game changer in the healthcare space. While, the opening of clinics in select Wal-Mart stores is mentioned in this article, I am interesting in learning what the author and others think about this possibility. To hear Grove speak, this represents a major disruption to the healthcare industry thus driving service results for consumers. To read this article however, it seems like it may be a PR stunt. Whats the real truth? Additionally, Jim Cramer declared his bullish stance in today's Mad Money lightning round.

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[edit] Congratulations! Great article analyzing the nuts and bolts of Wal Mart...

Suggestion by Irakrakow on 2008-01-08 20:32:13

Congratulations! Great article analyzing the nuts and bolts of Wal Mart's business model. As you correctly point out, Wal Mart's greatest growth prospects are from WalMart International. Perhaps you could expand the breakdown of international sales to include the challenges WMT faces in some of its major country markets? WMT's success has varied from one country to another. Wal Mart had to exit Germany in 2006, selling its operations to German-based Metro, and they've had problems in the UK. as well.

Wal Mart also has had problems integrating into Japan's retail economy. In 2001 WMT bought at 37% share in Seiyu, a Japanese retailer. It's been a money loser from the beginning, losing, for example, $117 million in 2004. WalMart announced that it will take over full ownership of Seiyu, incurring an additional $40 million write off. Japanese consumers apparently don't take well to the "every day low prices" strategy, preferring a more upscale shopping experience.

WMT has had much better success in Mexico. WalMart is Mexico's biggest retail chain. It offers banking services, at interest rates approaching 100%, a highly profitable venture that has been blocked in the US because of opposition by many special interest groups, not just banks. However, in the 3rd quarter conference call, Charles Holley, VP of Finance, remarked that "As we saw in the second quarter, the third quarter was a challenging one for Wal-Mart Mexico. Third quarter sales continue to be impacted by tough year over year comparisons and the slowing growth in consumer demand present in the overall economy.". The economies of Mexico and the US are closely linked.

In Brazil, Walmart is planning to invest $650 million for expansion, demonstrating further expansion in Latin America.

Your comments about WalMart being affected by the yuan-dollar are also correct. Wal Mart is expanding its outsourcing operations in China by 30% next year and depends on US trade negotiators for a favorable environment. In the most recent conference call, Wal-Mart China president and CEO Ed Chan said "This year, we have enjoyed double-digit comp (same store) growth for stores that are open for more than a year ... that is easily two to three times faster than our principal rivals." Of course, as you point out, such same store sales growth is just about impossible in the US.

Sources:
http://www.businessquickie.com/?p=555 http://business-strategy-case.blogspot.com/2007/12/walmart-in-mexico-case-study.html http://walmartwatch.com/blog/archives/wal_mart_china_want_to_do_even_more_business_together/ http://www.seekingalpha.com/article/54051-wal-mart-f3q08-qtr-end-10-31-2007-earnings-call-transcript?source=side_bar_transcripts

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