The CNBC team, in its popular segment “Squawk on the Street“ analyzed the commentary provided by global retailing giant Wal-Mart Stores, Inc. (NYSE:WMT) U.S Operations Chief Executive Officer, Bill Simon, with respect to the impact that improving economic indicators like the recently released U.S jobs data for the month of June could have on the prospects of the $246 billion market cap firm.
Wal-Mart Stores, Inc. (NYSE:WMT) U.S head had recently indicated that the improving jobs data had yet to show its positive impact on the consumer spending sentiments as observed in U.S retail store sales. The CNBC team also highlighted the efforts being put in by the struggling Wal-Mart Stores, Inc. (NYSE:WMT) under the helmsmen ship of its global President and Chief Executive Officer, Douglas McMillon, to turn the battle ship around.
“Squawk on the Street” presenters pointedly underscored the weakness that Wal-Mart Stores, Inc. (NYSE:WMT) operations have demonstrated in recent past, as demonstrated by “five straight quarters of loss” that the retailer has suffered due to the declining store traffic, which is triggered by sluggish consumer sentiment and the faster growth of e-commerce.
The Squawk team also highlighted the turnaround efforts that Wal-Mart Stores, Inc. (NYSE:WMT) is attempting by moving away from its larger than life “Supercentres” and “Superstores” and setting up more number of “smaller centres” which are more easily accessible to customers by locating them in neighbourhood. E-commerce is the other area of focus that the retailer is heavily investing into in order to get in touch with the customer, the Squawk team noted.
The presenters on CNBC also noted that turning around Wal-Mart Stores, Inc. (NYSE:WMT) is akin to turning around a huge ocean liner, thanks to its huge scale of operations, in terms of sales volume and its geographical spread of the retailer.