Walmart’s annual revenue fell 0.7% to $482,1 billion that, according to research firm S&P Capital IQ, was the worst result in 35 years, writes the Financial Times (FT). The publication notes that without the strengthening of the dollar sales would have grown by 2.8%.
Walmart noted that the growth of revenue from Internet Commerce is slowing for five consecutive quarters and in the fourth quarter of last year was 8%, whereas the Amazon the figure was 26%. The company blames the downturn in online sales slowing economy in the UK, China and Brazil.
The forecast for revenue growth of Walmart for the current year have also reduced from 3-4% to zero, the FT reports. This, according to the newspaper, reflecting concerns over high exposure to currency fluctuations and loss of income due to the reduction in the number of retail outlets.
At the close of trading on the new York stock exchange trading network fell 3.1%, to $64,09 apiece.
Conlumino analyst Neil Saunders recalled that the share of Walmart’s retail sales in the U.S. fell over the past five years, from 9.9 to 9.2%, reflecting the changing habits of consumers. In his opinion, if Walmart intends to keep the lead in the retail market, it is necessary to pay more attention to the development of Internet Commerce.