How Walmart is finding its resources limited by its own successes.
Walmart is often viewed as the one retailer that has the chance to be a legitimate online competitor to Amazon. But according to this interesting report by Vox Recode, Walmart is finding its resources limited by its own successes.
Walmart spent $11.8bn last year on dividends to shareholders every three months as well as buying back shares of stocks from shareholders. Over that same period of time, how much did Amazon spend on these practices? $0. And this is despite Amazon generating $13bn more than Walmart in cash from core business operations.
Walmart’s longtime relationship with Wall Street, therefore, is a boon and a bane. Amazon meanwhile has trained Wall Street to value revenue growth and moving into new business lines over large profits. [Vox Recode]
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