Analyst take: “Walmart is set to continue to grow and minimize all the risk that comes with the current uncertain economic (and health) landscape because it has worked so hard to integrate different business units to make shopping easier for consumers and selling easier for brands,” said Suzy Davidkhanian, eMarketer principal analyst at Insider Intelligence. “The company is also rounding out different parts of its ecosystem—health and wellness, banking, fulfillment—to diversify revenues and increase stickiness.”
The big takeaway: With costs ballooning due to supply chain and labor issues, the retailer may not be able to keep prices down much longer.
- Walmart Inc. spent $300 million more than expected on COVID-19 paid leave thanks to omicron spikes, according to The Wall Street Journal. The company now says it will no longer offer employees paid time off for coronavirus-related absences.
- As labor shortages persist, the retail giant will have to reinvest in its workforce to improve recruitment and retention.