Rocket Readings: Wal-Mart Is Crushing The Competition Again -- Here's How

Wal-Mart Is Crushing The Competition Again -- Here's How:

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From BofA/ML's Robert F. Ohmes, an explanation of how Wal-Mart is STILL garnering more and more market share this year.

We believe WMT’s Old School strategy is supporting market share gains & improvements in customer traffic this holiday season, driven by: (1) aggressive re- emphasis on EDLP (Everyday Low Price); (2) a robust holiday marketing campaign twice as large as LY along w/ addl’ features such as Layaway (supporting toys & electronic sales), “Super Saturday” toy & electronic sales events (began 11/5), Xmas Price Guarantee, a Holiday Credit offer (6 mos no interest w/ WMT credit card); (3) solid Black Friday traffic; (4) WMT’s gas 10c rollback program & lower gas prices; (5) early traction on WMT’s planned $2bn price investment over the next 2 yrs; (6) a return to the broadest assortment possible & improved on-shelf availability; & (7) ongoing expansion of multi-channel (Walmart Black Friday #4 searched item on Google over Black Friday).

Note that Wal-Mart is at a new 52-week high.

1-year chart of WMT via Bloomberg

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