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US-based Walmart became the first retailer to hit a historic $1 trillion market value on Tuesday (February 3). Reuters reported that the company’s year-long rally has seen its shares rise nearly 26% and put it among big tech giants like Nvidia and Alphabet.
A big part of Walmart’s success is that it has managed to attract two types of shoppers at once, using a mix that appeals to high-income customers looking for value and convenience while retaining its core base of low-income shoppers. The company’s stock has risen 468% in the past ten years, outpacing the S&P 500’s 264% gain, in part because of its strategy to retain those two types of shoppers, which has played a significant role in the competition.
In recent years, Walmart, one of the world’s largest retailers, has expanded its online marketplace to more than half a billion products, introduced easier shopping, created faster delivery, built a $4 billion advertising business that has boosted margins, and created a paid membership service called Walmart+ to rival Amazon Prime.
The company has invested billions in supply-chain automation to improve services, including stocking new products and speeding up deliveries. Investor optimism surrounding Walmart’s AI investments has fueled the stock’s rise.
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Reuters’s reporting contributed to this article.
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