Profit Pregame

Profit Off Walmart’s Game of “Catch-Up” – Here’s How

Another company is looking to dethrone Amazon

Walmart has a long road ahead – but here’s where they’re starting.

What’s happening?

Walmart is the world’s largest retailer. But when it comes to the e-commerce world, this global leader trails Amazon in a big way. In fact, last year, Amazon made up 47% of all online sales, while Walmart accounted for 4%.

This lack of online sales has suddenly come into the main focus of the company. And it makes sense seeing how the pandemic really is changing the landscape of retail with most consumers shifting their shopping habits to the online space.

So, recently, Walmart announced that it would be launching Walmart + – a direct competitor of Amazon Prime. Walmart+ will cost $98 per year, making it about $20 less than Amazon Prime. The two services will provide many of the same services. But at the same time, there are some crucial differences as well.

Walmart + will include same-day delivery on groceries and other items, discounts on gas, early access to product deals, reserved delivery slots, and more. The company is also discussing bringing back it’s “scan and go” program, which will allow customers to scan items with their phones and avoid checkout lines.

But despite these enticing features, Walmart+ will not be offering a streaming service like Amazon currently does. And it’s too early to say if the prices of home appliances or other no grocery items will be lower than Amazon. But regardless, this is a step in the right direction for the company.

Where’s the money?

Let’s be honest; Walmart is behind the curve when it comes to the e-commerce space. But regardless, this is a step in the right direction for the company.

And unlike Amazon, Walmart claims that 90% of Americans live within a 10-mile radius of Walmart. That puts the company in an excellent position for same-day delivery and groceries as well. This close radius is a key advantage that Walmart + will have over Amazon prime. The company will leverage its 4,000 stores to fulfill its same-day delivery service – making it more dependable.

With all that said, despite my distaste for many major retail names – Walmart has caught my eye with this newest move.

And here’s why…

How can I get some?

It’s nice to see Walmart finally turning the corner and competing in the online world. Many big names in the brick and mortar world have struggled with the shift to an online format. But I think Walmart has handled this transition greatly. And I genuinely believe that this newest feature will help boost revenue for the company.

Now, we’ve talked about retail a few times here – including many calling the sector a “bubble” and warning many to stay away. But in my opinion, like all sectors, there are strong and weak retail names. And when investing in this world, it’s essential to differentiate between the two.

For instance, I have no interest in retail names when it comes to the likes of companies like Macy’s, Gap, and Nordstrom.

But I think retail names like Walmart, Home Depot, and Lowes have continued to prove their worth as an investment. And with Walmart + officially announced and in the works, Walmart has become a frontrunner in my book.

In the Spotlight: The Infamous Drink Producer

Coca-Cola reported earnings this week, and it wasn’t pretty. The company saw its largest decline in quarterly revenue in at least 30 years. Coke reported fiscal second-quarter net income of $1.78 billion, or 41 cents per share, down from $2.61 billion, or 61 cents per share, a year earlier.

On top of this, net sales dropped 28% – a significant hit to the companies past numbers.

But no all is lost, according to the CEO.

CEO James Quincey said the company believes that the second quarter will be the most challenging quarter of the year. In fact, he noted that demand has already begun to improve as global lockdowns have started to lift.

The company has got the ball rolling on coming out of this crisis stronger than ever too. It’s planning a new “refreshed” marketing approach, retiring some old brands, and focusing on spending money efficiently and effectively.

Now, I will be keeping a close eye on this company and watching how it bounces back from these hard-hitting numbers. And no worries, I’ll be sure to keep you updated as well.

Finally, You’ll Want to Hear this…

Just like Walmart, countless businesses across all industries are being forced to innovate in order to stay profitable in a post-pandemic world.

While Walmart has the customer base and the resources to help their new ventures become successful, not every company has those luxuries.

The S.C.A.N. trading system I employ in my new Project 303 service was designed to pour through the data and determine which of these companies are the most likely to not just survive – but thrive – in this unpredictable new market.

My algorithm has already provided readers with the chance to score average wins of over 88%, and it’s showing no signs of slowing.

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