They are under pressure to raise wages - especially after Amazon boosted its base rate to $15 an hour. To be sure, Walmart’s business model faces some headwinds. Wall Street now seems eager to see what the retailer can do in the world’s second-most-populous nation. The good news on the online-sales front also boosted investor confidence in the wisdom of Walmart’s $16 billion purchase of money-losing Flipkart, India’s largest e-tailer.
It was a reassuring data point for investors worried about a question that dogs a large percentage of American companies in 2018: But can you compete with Amazon?
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But most important in that quarterly report was a 40 percent rise in e-commerce sales year-on-year - evidence that a series of initiatives and investments on the online front are working. The old logic seemed to be in effect when investors sent the shares plummeting last spring after a couple of weak earnings reports - but then WMT came out with impressive numbers in August and the investment community seemed to accept that maybe good times could also be good for a retailer that built its brand on rock-bottom prices. Yet amid a historically strong economy, shares in the company are near their all-time high, at $105 a share. Walmart long been a company known for doing better when the economy does poorly.
Photo: Timothy Fadek/Bloomberg via Getty Images
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