Can Jet Prevent Wal-Mart from Experiencing the Same Fate as Sears?

Can Jet Prevent Wal-Mart from Experiencing the Same Fate as Sears?

Not many people are aware of Wal-Mart’s recent struggles and CEO, Doug McMillon, still refuses to acknowledge the amount of trouble they’re really in.  To be more specific, Wal-Mart is praying that the new acquisition of will bring them back to a stable state.  It may be difficult to face the gruesome reality for Wal-Mart due to their long history of success, but they’re certainly not the first popular company to face extreme losses and potentially “go out of business.”

Sears is a perfect example of a company that was once the most successful department store around.  Ever since the new CEO, Ed Lampert, took over Sears has seen the same store sales decline every single quarter, but one.  They just recently announced another $350 million quarterly loss last month and it doesn’t seem like it will get any better for them.  What was once an iconic company and Dow Jones Industrial Average component, Sears is now faced with an inevitable and permanent close.

Wal-Mart is not close to Sears in any terms, but that may be it’s foreseeable future if Jet doesn’t work out as planned.  However, it is more dependent upon the actions of Wal-Mart now rather than Jet.  There’s a few questions that they must address and these include: Are they willing to cannibalize the store for higher electronic sales?  Are they willing to reduce the size of stores and close others to shift revenues online?  Are they willing to suffer Amazon-like profits to grow?  Are they willing to give up on the past, and let new leadership guide the company into a brighter future?

If Wal-Mart can take advantage of the Jet acquisition, they can avoid what seems to be an inevitable demise, and grow even stronger.  Maybe strong enough to compete with and possibly overtake Amazon.  They must realize the market is constantly shifting and extreme changes must be made to accommodate that.  Wal-Mart holds the company’s fate in their own hands and we shall see if they follow the path of Amazon or Sears.

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