Walmart (NYSE:WMT) stock is a behemoth in the retail world and is known for its everyday low prices. When the economy faces turbulent times, Walmart stock has a proven track record of weathering economic storms.
The company’s resilience, innovative strategies and steady expansion make it a brilliant investment in the long term. Perfect for those who want growth and stability in times of high inflation and expensive prices. Walmart stock could be a valuable addition to your 2024 portfolio.
Pricing Power in an Inflationary Environment
As inflation grips the economy, consumers are becoming more focused on value. Walmart, with its ‘’everyday low prices’’ philosophy, is uniquely positioned to thrive in this macroeconomic environment.
The company has an unparalleled negotiating power with its suppliers, allowing it to pass cost savings directly to its customers. This is not something that you can say for the majority of retailers, who are often accused of price gouging over the last 12-18 months.
This has created an extremely loyal customer base and inevitably makes Walmart more appealing than its competition. Walmart’s commitment to affordability is paramount, keeping shoppers coming through the door and further building upon their brand loyalty.
Omni-Channel Strategy and E-Commerce
Walmart’s omnichannel and e-commerce strategy is changing the way consumers shop. The company merges its traditional physical stores with a robust online presence, offering options like same-day delivery, curbside pickup, and seamless in-app purchases.
This hybrid experience caters to a diverse customer base, allowing them to choose how and when they want to interact and make purchases. The result translates to increased customer reach and stronger connections between online and offline channels.
Their e-commerce business continues to see rapid scale in the midst of higher prices. In Q4 FY24, global e-commerce sales swelled 23% YOY surpassing the $100 billion mark for the first time. Their diversification strategy is working, and they continue to be a leading figure in the fight for customers strained by the rising cost of living.
Walmart’s strategic acquisitions, including the purchase of Flipkart in India, further solidifies its global e-commerce ambitions. Beyond traditional online sales channels, they continue to innovate with new revenue growth opportunities.
One example would be their Walmart+ membership program, which provides a suite of benefits for relatively small recurring fee. These initiatives are accelerating revenue growth, and further diversifying their dependence on physical stores.
Walmart Stock: A Beacon for Stability and Growth
Walmart stock is more than just a retail giant, and its well-oiled machine is optimized for efficiency to drive customer value and retention. The company’s strategic moves, such as focusing on pricing power and building a robust omnichannel strategy further positions them for long-term success.
Walmart is a beacon for stability and growth. They weathered many economic downturns and have continued their ascension as the largest company in the world by revenue. This makes Walmart stock one of the best long term stocks to buy as they continue to expand their operations globally.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.
