Walmart’s shares reportedly reached an all-time high Friday (Nov. 3), with investors betting on its ability to thrive during the holiday season.
This peak, at $166.30, is the highest point since Walmart’s inception on the New York Stock Exchange in 1972, CNBC reported Friday (Nov. 3).
One of the key factors driving Walmart’s success is its dominance in the grocery sector, according to the report. As the largest grocer in the country, Walmart generates over half of its annual revenue from groceries. This category remains essential for shoppers, even during economic downturns or inflationary periods. While competitors like Macy’s and Target have faced challenges, Walmart has managed to maintain strong sales and draw foot traffic from its grocery offering.
Walmart has seized the opportunity presented by sticky inflation, particularly in food and household essentials, to attract new or infrequent shoppers, the report said. The company successfully enticed more grocery shoppers from higher-income households, including those making over $100,000, to visit its stores and website.
To keep up with technologically advanced rivals like Target and Amazon, Walmart has prioritized enhancing the customer experience, per the report. The company has launched fashion-forward clothing brands, revamped its website and app, and will invest over $9 billion to upgrade its stores nationwide. Additionally, Walmart has expanded its online offerings by adding more items and higher-end brands through its third-party marketplace.
Walmart’s strong eCommerce growth is another noteworthy achievement, according to the report. While many companies experienced online sales declines as the COVID-19 pandemic receded, Walmart posted double-digit eCommerce gains for its U.S. business in the past two quarters. Initiatives such as curbside pickup and delivery have made it quick and easy for customers to make purchases.
Investors have taken notice of Walmart’s success, driving the retail giant’s shares up more than 16% this year, the report said. That pace has outperformed the S&P 500 and the retail-focused ETF, the XRT.
This report comes four days after Walmart said it was celebrating the re-grand opening of 117 remodeled stores across the United States, each of which is designed to welcome people to a “more modern, highly-connected Walmart.”
In another recent project, the retailer spotlighted its use of artificial intelligence (AI) and augmented reality (AR) technologies to enhance consumers’ shopping experiences.