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‘New week-New world’ - Walmart

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‘New week-New world’
Happy Monday! In this new week-new world, we are highlighting a large named retail store that can’t be ignored – Wal-Mart. Last Wednesday, Wal-Mart, the largest retailer in the world shocked the markets when they reported worse than expected performance and anticipate overall sales to continue declining going into 2016. 
Why is this a big deal?
This is a big deal to consumers like you and me, as well as the economy, because this news on Wal-Mart’s performance depicts how we are spending. Wal-Mart does nearly $500 billion in sales a year, and that is because a majority of the US population wealthy and poor shop at the local Wal-Mart. If sales are decreasing it infers that people are taking their business elsewhere. This elsewhere is online and more specifically large e-commerce platforms like Amazon. 
What does this mean for the world?
(1) The internet as we know it is taking over the world. (2) People like you and I now want the optimal shopping convenience which will be provided via the internet. (3) The economy is not growing as fast as many may imagine even with lower gas prices. Wal-Mart’s data verified these three key points. Wal-Mart’s strategy to regain their growth includes increasing employee wages to $9, spending millions of dollars to have more of an Amazon like e-commerce platform for their customers, and continue to deliver the lowest priced products. We are now in an era where technology will be the forefront of consumer engagements. We can all learn some valuable lessons from what Wal-Mart is currently going through, and we can be assured if this giant business is being affected in growth, then there are plenty of other businesses that are also feeling the pain as well.
At the time of this commentary Michael Ojo, his family and/or clients of Golden Door Asset Management were LONG Wal-mart Stores Inc. (WMT) — although positions can change at any time.
Michael Ojo is the Account Manager of Golden Door Asset Management, LLC, a registered investment advisor specializing in individual and high net worth individual private wealth management. For more information on investing with Golden Door Asset Management, LLC please visit our website, Golden Door Asset Management, LLC is a New Jersey LLC, with its principal office located in Manalapan, NJ.
Michael Ojo is also the publisher of CareStocks, a newsletter focusing in on healthcare services, medical equipment, technology and real estate stocks. More information to the newsletter can be found at
© 2015 Golden Door Asset Management, LLC. All rights reserved.
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