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Walmart's (WMT) New Fulfillment Center to Boost E-commerce
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Walmart Inc. (WMT - Free Report) is on track to enrich its customers’ experience by enhancing its supply-chain network. The retail behemoth unveiled plans of opening a 1.8M plus square-foot fulfillment center in southern Pennsylvania. The facility, which is expected to begin operations in Spring 2022, will contribute to Walmart’s growing supply-chain network and e-commerce capabilities.
This Shippensburg facility is likely to create up to 600 full-time, permanent job positions across the region. Currently, Walmart operates seven distribution centers and 160 retail outlets and employs 60,000+ associates in Pennsylvania.
Management highlighted that fulfillment centers are a critical part of Walmart’s supply-chain network. These fulfillment centers store various items that are picked, packed and shipped directly to customers. The centers allow increased access and quick shipping of everyday low-priced products to customers.
Image Source: Zacks Investment Research
We note that Walmart’s U.S. e-commerce sales rose 1% in the fourth quarter of fiscal 2022, and soared 70% on a two-year stack basis. The company is witnessing rapid growth in advertising income. At Sam’s Club, e-commerce sales jumped 21% on the back of a robust direct-to-home show and solid curbside performance. In the International segment, e-commerce sales advanced 21% on a constant-currency basis.
Walmart’s e-commerce business and omni-channel penetration have been increasing all the more amid the pandemic. From fiscal 2021 beginning till fiscal 2022 end, the company’s digital sales as a percentage of sales increased from 6% to 13%. The company has been taking several e-commerce initiatives, including buyouts, alliances and improved delivery and payment systems. The company is innovating in supply chain and adding capacity and building businesses such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace and Walmart Fulfillment Services.
What Else Should You Know?
The Zacks Rank #3 (Hold) company has undertaken robust strides to strengthen its delivery arm, as evident from its expansion of InHome delivery service; investment in DroneUp; pilot with HomeValet, introduction of Carrier Pickup by FedEx, the launch of Walmart+ membership program; drone delivery pilots in the United States with Flytrex and Zipline; and a pilot with Cruise to test grocery delivery through self-driven all-electric cars.
Walmart also unveiled an alliance with DoorDash in the third quarter of fiscal 2021 to deliver prescriptions from pharmacies of Sam’s Club alongside expanding Scan & Go to all fuel stations at U.S. Sam’s Clubs. Prior to this, Walmart unveiled Express Delivery; joined hands with Point Pickup, Roadie and Postmates; along with acquiring Parcel to enhance its delivery service. Furthermore, the company’s store and curbside pickup options add to customers’ convenience. As of the fourth quarter of fiscal 2022, Walmart U.S. had 4,600 pickup locations and 3,500 same-day delivery stores.
Walmart’s shares have increased 5% in the past year compared with the industry’s rise of 11.1%.
Capri Holdings, which offers accessories and footwear, sports a Zacks Rank #1 (Strong Buy) at present. The company has a significant trailing four-quarter earnings surprise, on average. CPRI has an expected earnings per share (EPS) growth rate of 53.9% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Capri Holdings’ current financialyear sales suggests growth of 37.1% from the year-ago period’s levels.
Target, a general merchandise retailer, carries a Zacks Rank #2 (Buy) at present. TGT has a trailing four-quarter earnings surprise of 21.3%, on average. Target has expected EPS growth rate of 15% for three to five years.
The Zacks Consensus Estimate for Target’s current financial year sales suggests growth of 3.5% from the year-ago period’s levels.
Tractor Supply, the largest retail farm and ranch store chainin the United States, currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 22%, on average.
The Zacks Consensus Estimate for Tractor Supply’s current financial-year sales and EPS suggests growth of 8.2% and 8.4%, respectively, from the year-ago period. TSCO has an expected EPS growth rate of 9.8% for three-five years.
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Walmart's (WMT) New Fulfillment Center to Boost E-commerce
Walmart Inc. (WMT - Free Report) is on track to enrich its customers’ experience by enhancing its supply-chain network. The retail behemoth unveiled plans of opening a 1.8M plus square-foot fulfillment center in southern Pennsylvania. The facility, which is expected to begin operations in Spring 2022, will contribute to Walmart’s growing supply-chain network and e-commerce capabilities.
This Shippensburg facility is likely to create up to 600 full-time, permanent job positions across the region. Currently, Walmart operates seven distribution centers and 160 retail outlets and employs 60,000+ associates in Pennsylvania.
Management highlighted that fulfillment centers are a critical part of Walmart’s supply-chain network. These fulfillment centers store various items that are picked, packed and shipped directly to customers. The centers allow increased access and quick shipping of everyday low-priced products to customers.
Image Source: Zacks Investment Research
We note that Walmart’s U.S. e-commerce sales rose 1% in the fourth quarter of fiscal 2022, and soared 70% on a two-year stack basis. The company is witnessing rapid growth in advertising income. At Sam’s Club, e-commerce sales jumped 21% on the back of a robust direct-to-home show and solid curbside performance. In the International segment, e-commerce sales advanced 21% on a constant-currency basis.
Walmart’s e-commerce business and omni-channel penetration have been increasing all the more amid the pandemic. From fiscal 2021 beginning till fiscal 2022 end, the company’s digital sales as a percentage of sales increased from 6% to 13%. The company has been taking several e-commerce initiatives, including buyouts, alliances and improved delivery and payment systems. The company is innovating in supply chain and adding capacity and building businesses such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace and Walmart Fulfillment Services.
What Else Should You Know?
The Zacks Rank #3 (Hold) company has undertaken robust strides to strengthen its delivery arm, as evident from its expansion of InHome delivery service; investment in DroneUp; pilot with HomeValet, introduction of Carrier Pickup by FedEx, the launch of Walmart+ membership program; drone delivery pilots in the United States with Flytrex and Zipline; and a pilot with Cruise to test grocery delivery through self-driven all-electric cars.
Walmart also unveiled an alliance with DoorDash in the third quarter of fiscal 2021 to deliver prescriptions from pharmacies of Sam’s Club alongside expanding Scan & Go to all fuel stations at U.S. Sam’s Clubs. Prior to this, Walmart unveiled Express Delivery; joined hands with Point Pickup, Roadie and Postmates; along with acquiring Parcel to enhance its delivery service. Furthermore, the company’s store and curbside pickup options add to customers’ convenience. As of the fourth quarter of fiscal 2022, Walmart U.S. had 4,600 pickup locations and 3,500 same-day delivery stores.
Walmart’s shares have increased 5% in the past year compared with the industry’s rise of 11.1%.
3 Retail Stocks to Bet on
Here are some better-ranked stocks — Capri Holdings (CPRI - Free Report) , Target Corporation (TGT - Free Report) and Tractor Supply Co. (TSCO - Free Report) .
Capri Holdings, which offers accessories and footwear, sports a Zacks Rank #1 (Strong Buy) at present. The company has a significant trailing four-quarter earnings surprise, on average. CPRI has an expected earnings per share (EPS) growth rate of 53.9% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Capri Holdings’ current financialyear sales suggests growth of 37.1% from the year-ago period’s levels.
Target, a general merchandise retailer, carries a Zacks Rank #2 (Buy) at present. TGT has a trailing four-quarter earnings surprise of 21.3%, on average. Target has expected EPS growth rate of 15% for three to five years.
The Zacks Consensus Estimate for Target’s current financial year sales suggests growth of 3.5% from the year-ago period’s levels.
Tractor Supply, the largest retail farm and ranch store chainin the United States, currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 22%, on average.
The Zacks Consensus Estimate for Tractor Supply’s current financial-year sales and EPS suggests growth of 8.2% and 8.4%, respectively, from the year-ago period. TSCO has an expected EPS growth rate of 9.8% for three-five years.