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Walmart Dumps Its 2022 Shopping Fest; Adopts Different Route Versus Amazon To Clear Excess Inventory

In This Article:

  • Walmart Inc (NYSE: WMT) has dumped its shopping extravaganza for 2022 that overlapped with Amazon.com Inc (NASDAQ: AMZN) Prime Day, CNBC reports.

  • Yet this year, much of Walmart's merchandise is already on sale.

  • Bright yellow "Clearance" signs have become a fixture in many stores in recent weeks, and Walmart's website touted thousands of Rollbacks, a signature term for the discounter's 90-day price cuts, on bicycles, air fryers and more.

  • Walmart's heavy discounting reflects miseries borne by retailers to clear excess merchandise even at the cost of its profits.

  • The heavy discounts are forcing other retailers to follow suit.

  • High markdowns at Walmart stores caused Oppenheimer to take the company off its list of top picks.

  • Oppenheimer saw Walmart benefit from attracting more price-sensitive shoppers who seek low-priced groceries and essentials. However, upcoming quarters will get compared against the pandemic boom period and government stimulus.

  • While Walmart bypassed the flashy marketing and short-term sales event, it assured great discounts for shoppers who hit its stores.

  • Contrastingly, Amazon will host a second shopping event for Prime members in the fourth quarter.

  • Online shopping, which surged amid the pandemic as activities got restricted indoors, has noted a significant correction upon recovery, further accelerated by the rising inflation.

  • Price Action: WMT shares traded lower by 0.09% at $125.21 in the premarket on the last check Friday.

  • Photo via Wikimedia Commons

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