Wal-Mart Stores, Inc. (NYSE:WMT) is among the stores that have felt the economic heat and have reduced their 2014 revenue guidance. The U.S. largest retailer on Wednesday told investors that it expects 2014 sales revenue to fall between $482.6 billion and $487.3 billion, citing tougher sales environment.
The company said that it forecasts a 2-3% growth this year from $473.1 billion last year, down from 3-5% that the company gave earlier. Many other retailers have also reduced their revenue guidance due to the uncertainty going into the holiday season. With a global economic slowdown, it’s expected that holiday shopping will shrink to levels that will affect revenues of many companies.
Wal-Mart Stores, Inc. (NYSE:WMT) indicated that it’s strategizing on its operations to mitigate the effect of users who opt to shop online or in smaller and more accessible stores close to their residences. The company disclosed that it will reduce funds planned for building large traditional stores and instead improve on its e-commerce.
The company raked in $10 billion last year from online sales and is expecting the figure to more than triple by 2018.
“We’ll give customers the choices they want and need by integrating digital and physical retail,” said Doug McMillon, Wal-Mart Stores, Inc. (NYSE:WMT) CEO and president. “We won’t be just a store on the street. We’ll support our customers’ lives with them in the driver’s seat, to save them money and time.”
Wal-Mart Stores, Inc. (NYSE:WMT) is looking at stocking more products that customers like most and ensure that services become more efficient. Such a move is likely to attract more customers as the company continues to strengthen its online business. The company has said that it will spend between $1.2 billion and $1.5 billion on digital efforts next year, compared to $1 billion this year.
This article has been written by Victor Ochieng.
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