Walmart sales still strong as pandemic eases, stimulus helps
Walmart raised its annual earnings forecast on Tuesday after delivering better-than-expected results in the first quarter that showed shoppers, flush with U.S. stimulus payments, splurged on clothing, as well as lawn and garden items. Online sales rose 37%, down from 69% during the fourth quarter. “Our optimism is higher than it was at the beginning of the year," said CEO Doug McMillon.news.yahoo.com
Walmart raising wages for 425,000 workers
Walmart said its starting wage will stay at $11 an hour. Walmart’s current minimum wage is still above Florida’s minimum wage, which starts at $8.65 an hour. The amendment will raise the state’s minimum wage to $15 an hour by 2026. AdPresident Joe Biden included a $15 federal minimum wage in his $1.9 trillion stimulus proposal last month. The legislation calls for the minimum wage to increase to $15 an hour by 2025.
Walmart to hike pay for 425,000, or nearly a third of its U.S. workforce
Walmart — the nation's largest private employer — is hiking pay for 425,000 workers, or nearly a third of its U.S. workforce of 1.5 million. The retailer's starting minimum pay remains $11 an hour, but the increase will bring Walmart's average pay overall to more than $15 an hour, up from more than $14 an hour. The retailer's increase comes as the White House and Congress weigh hiking the federal minimum wage that's held at $7.25 since 2009. While not endorsing proposals to raise base pay to $15 an hour, Walmart CEO Doug McMillon has called for Congress to increase the federal minimum, which in June of 2019 he called "too low." Beyond spending more on labor, Walmart says it plans to invest about $14 billion in 2021 on supply-chain efficiency and automation.cbsnews.com
Why Walmart's CEO says Americans urgently need another stimulus check
When Walmart CEO Doug McMillon went to the White House last week, he said he gave a clear message: Americans urgently need another round of stimulus checks. When shoppers got the most recent stimulus checks at the end of the year, he said a new pattern emerged: More shoppers put the extra dollars toward buying necessities. Its Chief Financial Officer Brett Biggs told CNBC that its fiscal fourth-quarter earnings got a lift from stimulus payments and it would expect similar results if consumers get another check. Yet McMillon said he stressed stimulus checks during his Oval Office visit because of what he has seen and heard at the company's stores. "Those customers are the ones that the stimulus package needs to go help and go help quickly," he said.cnbc.com
Why an emboldened Walmart is looking to beyond retail for future growth
With the strategy, Walmart is acknowledging a tough reality: Retail may not be enough to power its future. On Thursday, the retail giant's leaders spoke at a virtual investor day and detailed a plan to sustain momentum as some pandemic-related tailwinds fade and online sales swell. This fall, it launched Walmart+, a subscription-based service with perks like free shipping and unlimited grocery deliveries to the home. In the fiscal year, Walmart grew its revenue by $35 billion, but higher sales alone won't get it to higher profits. These improvements will likely make online sales more efficient and profitable.cnbc.com
Walmart to hike wages for 425,000 workers to average above $15 an hour
A worker is seen wearing a mask while organizing merchandise at a Walmart store, in North Brunswick, New Jersey, July 20, 2020. Walmart announced Thursday it will raise pay for workers to an average above $15 an hour, giving a boost to 425,000 employees. Walmart said its minimum starting wage for workers will remain at $11 an hour. Rivals Amazon and Target have made their starting pay $15 an hour, and the Biden administration and Congress are considering hiking the federal minimum wage to that level from $7.25 per hour. "We will raise our starting wage over time, and I think our history proves that," McMillon said.cnbc.com
Walmart shares fall on earnings miss, retailer sees sales growth slowing in coming year
Shares were down nearly 6% Thursday morning, as investors reacted to the retailer's warning that it expects sales to moderate this year. It said earnings per share will decline, but will range flat to slightly higher after excluding divestitures. The big-box retailer has benefited from pandemic trends, as Americans buy more groceries, cleaning products and other essentials. He said it will step up investments to adjust to the significant ways the pandemic has transformed the retail business. For example, he said Walmart will spend on automation to speed up the number of curbside pickup orders it can fill.cnbc.com
Tapestry CEO says heart-shaped Kate Spade bag sold out after going viral on TikTok
Tapestry CEO Joanne Crevoiserat told CNBC on Thursday the company saw a surge in demand for a heart-shaped Kate Spade bag that went viral on TikTok last month. We're learning how to engage that community better and better," Crevoiserat said in an interview on "Closing Bell," after the retailer reported better-than-expected earnings for its holiday quarter earlier in the day. Crevoiserat's comments provide another example of the potential social media platforms like TikTok represent for Tapestry and other consumer brands. The company's $1.3 billion online sales over the past 12 months is "more than double where we were a year ago," she said. "We've had the capabilities and we're getting better and better at engaging consumers on digital channels and on social channels."cnbc.com
How 'urgent' Covid relief package consensus can be reached: Business Roundtable's Josh Bolten
First get the pandemic under control and second, support the most vulnerable through tough economic times," Bolten said. $15 minimum wage may complicate Covid reliefThat includes the $15 minimum wage effort. "The increase most directly affects small business and they have been the most devastated by the pandemic," Bolten said. Main Street is concerned about the timing, though it has been estimated that a minimum wage increase could help as much as 20% of the U.S. workforce. John Bolten Business Roundtablecnbc.com
Walmart donates $14 million as part of broader pledge to advance racial equity
Walmart and its foundation will distribute the first $14.3 million to 16 nonprofit organizations. Walmart is one of many companies that promised to throw its money and weight behind addressing racial disparities after Floyd's killing on Memorial Day. When the company made its initial pledge in June, McMillon acknowledged that corporations — including Walmart — must do more than simply write checks. Black employees make up about 21% of Walmart's 1.5 million U.S. workforce, according the company's most recent diversity and inclusion report. Walmart tapped longtime employee Kirstie Sims to lead the company's Center for Racial Equity, which will focus on inequities in four key areas: finance, health care, education and criminal justice.cnbc.com
Walmart CEO Doug McMillon says Walmart+ will focus on experience and gradually add perks as it scales up
Walmart CEO Doug McMillon said the discounter wants to grow its new membership program, Walmart+, but won't sacrifice customer experience for subscriber numbers. McMillon said the big-box retailer wants to gradually add perks and expand capacity to keep up with members' orders, such as picking and packing groceries for their unlimited home deliveries. On Wednesday, Walmart said it would drop its $35 online shipping minimum for members. McMillon said the company decided to ditch the minimum because it "heard loud and clear from customers that had purchased a Walmart+ membership that they didn't expect to have a minimum for e-commerce orders." He said it ramped up shipping so it can keep up with an increase in more separate orders by members, even during the holiday season.cnbc.com
Walmart earnings top expectations as customers’ new shopping habits send e-commerce sales soaring 79%
Walmart reported third-quarter earnings on Tuesday that topped Wall Street's expectations as customers continued to shop online and sent U.S. e-commerce sales soaring by 79%. And, he added, the retailer had a strong quarter, despite "an unusual and softer back-to-school season and less benefit from government stimulus spending versus the first half of the year." Walmart's same-store sales in the U.S. grew by 6.4%, higher than the increase of 3.9% expected by StreetAccount survey. The membership warehouse club's same-store sales increased about 11%, excluding fuel, and its e-commerce sales jumped 41%. Flipkart, an Indian e-commerce retailer that Walmart acquired two years ago, had a record number of monthly active customers.cnbc.com
Walmart ends contract with robotics company, opts for human workers instead, report says
At some Walmart stores, robots have roamed the sales floors and helped check if shelves were stocked. The report, which cited unnamed people familiar with the situation, said Walmart recently cut ties with Bossa Nova Robotics. A Walmart spokesperson told the Journal that about 500 robots were in Walmart's more than 4,700 stores when the contract ended. Walmart has seen significant growth during the coronavirus pandemic, as Americans buy toilet paper, canned goods, puzzles and more. In a recent interview on CNBC's "Squawk Box," Walmart CEO Doug McMillon said sporadic out-of-stocks have continued to be a problem.cnbc.com
Video app TikTok leans into e-commerce with Shopify deal
The popular short-form video app TikTok, still under U.S. government scrutiny for its Chinese ownership, is moving closer to becoming a marketplace for buying stuff. Canadian e-commerce platform Shopify said Tuesday it's made a deal with TikTok enabling merchants to create “shoppable” video ads that drive customers to online stores. The partnership was announced Tuesday amid stalled negotiations for Walmart to buy a 7.5% stake in the video app. Then, video ads will be automatically generated that could show up in a TikTok user’s video feed and drive customers to Shopify for checkout. Walmart and Shopify are on good terms, having teamed up against Amazon in June on a deal that enables Shopify’s small businesses to get listed on Walmart.com.
Walmart has a grand plan to help suppliers club together to buy green energy
"We committed our company to achieving 100% renewable energy, a zero-waste strategy, a more sustainable supply chain and an increase in the minimum wage," he explained. Much of that will come from power purchase agreements (PPAs), where the retailer signs long-term deals to buy green energy from suppliers, a practice that has helped it contract 1.2 gigawatts of renewable energy across 2018 and 2019. Smaller companies can be priced out of the market for renewable energy, and there are only around 100 corporates buying renewable energy in this way, according to Walmart's calculations and data from the Renewable Energy Buyers Alliance. As suppliers come on board, Walmart will report on how much energy is bought via Gigaton PPA. It's not just retail giants helping smaller businesses procure renewable energy — companies that help domestic users collectively buy green power are springing up.cnbc.com
Walmart CEO says Business Roundtable unveils plans to 'keep a spotlight on racial equity'
Walmart CEO Doug McMillon said the nation's top CEOs want to "keep a spotlight on racial equity and keep the work moving forward," even as Americans live through the coronavirus pandemic and follow the presidential election. McMillon is chairman of the Business Roundtable, a group of leaders from 208 U.S. companies. Some of the biggest names in the corporate world helped lead the effort, including former AT&T CEO Randall Stephenson, JPMorgan Chase CEO Jamie Dimon and General Motors CEO Mary Barra. At the time, McMillon also pledged that Walmart and the company's foundation would commit $100 million over five years to create a new center on racial equity and step up its recruitment of people of color. McMillon also laid out more details of the Business Roundtable's recommendations in an op-ed in USA Today and on Business Roundtable's website.cnbc.com
Walmart CEO says TikTok deal would help make social media more shoppable
Walmart CEO Doug McMillon said Thursday that the retailer wants to own part of popular video app TikTok because it sees social media as a huge business opportunity and a powerful way to reach customers. In an interview on CNBC's "Squawk Box," he said Walmart sees TikTok as a "discovery opportunity" for consumers to find merchandise they want to buy. "If you're watching a TikTok video and somebody's got a piece of apparel or an item on it that you really like, what if you could just quickly purchase that item?" By working together, he said the companies could speed along the shipping of a certain item once a TikTok user chooses to buy it. "So how could we help with a supply chain, a back-end that makes the whole experience terrific, not just the moment that you buy the item."cnbc.com
Walmart CEO Doug McMillon to Congress: Get a stimulus deal done
Walmart CEO Doug McMillon on Thursday called on Congress to work together and pass a stimulus deal to help American families and small businesses. The big-box retailer's second-quarter sales crushed Wall Street's estimates and its online sales nearly doubled in the second quarter that ended July 31. At the time, Walmart's chief financial officer, Brett Biggs, credited government stimulus as one of the factors that gave the company's earnings a boost. In recent months, McMillon said the retailer, which has stores in towns and cities across the country, has seen families cope with very different financial circumstances. But there are other people that are struggling paycheck to paycheck – if they have a paycheck – and so many people are unemployed that we're seeing that pressure as well."cnbc.com
Walmart CEO on buying Jet.com: We would 'do that all over again'
Walmart paid $3.3 billion for Jet.com nearly four years ago. "Absolutely ... would do that all over again," McMillon told CNBC's Becky Quick in an exclusive interview Wednesday morning. "That was the other role that I thought Jet was going to play," the CEO said. Critics have contended, however, that Jet.com was only a money-losing venture for Walmart. Walmart shares as of Tuesday's market close are up about 5% this year.cnbc.com
Cramer says 'government was a bad actor,' allowing big retailers to get even bigger in coronavirus crisis
CNBC's Jim Cramer said Wednesday that governments forcing some retailers to close and others to stay open was "somewhat rigged" and has permanently damaged smaller businesses. Cramer's comments came as big box retailers report their quarterly earnings, showing their business results during the lockdowns. Walmart, for example, reported its fiscal first quarter earnings on Tuesday, showing online sales that rose 74% year-over-year and same-store sales surging by 10%. "But at the same time, the government was, I thought, a bad actor in the sense that they let some big guys become even bigger." The big guys won," Cramer said.cnbc.com
Cramer: Earnings from retailers like Walmart, Home Depot show 'survival of the fittest economy'
CNBC's Jim Cramer said Tuesday that large retailers in the U.S. such as Walmart benefited from the coronavirus-related restrictions on businesses, contending this week's earnings reports will reflect the top-heavy nature of the economy. So many other companies, little companies, medium, small, just couldn't compete," Cramer said on "Squawk on the Street." Cramer's comments came shortly after Walmart reported first-quarter earnings, which showed U.S. e-commerce sales spiked by 74% and same-store sales rose 10% as the pandemic intensified. E-commerce giant Amazon has also solidified its dominance during the pandemic, Cramer has argued. There's room for Lowe's," Cramer added, ahead of the retailers' expected earnings reports on Wednesday.cnbc.com
Walmart winds down Jet.com four years after $3.3 billion acquisition of e-commerce company
It paid $3.3 billion to buy Jet.com, an e-commerce startup that it hoped would attract younger, affluent and city-dwelling customers and help it fend off Amazon's rapid rise. He pointed to Walmart's curbside pickup, delivery to the home and expansion of categories beyond groceries, such as apparel and home decor. "We're seeing the Walmart brand resonate regardless of income, geography or age. Jet.com's founder, Marc Lore, leads Walmart's e-commerce business in the U.S.McMillon said Walmart doesn't "anticipate a significant accounting charge due to this decision." He said most employees had been moved to roles tied to the Walmart brand.cnbc.com
Walmart earnings soar as e-commerce sales jump, shoppers flock to stores
Walmart said Tuesday that e-commerce and store sales grew significantly in the first quarter as customers turned to the retailer for items from groceries to bicycles during the coronavirus pandemic. The big-box retailer said customers' long stays at home and their precautions during the public health crisis shook up shopping patterns. Walmart's e-commerce sales in the U.S. shot up by 74%, and same-store sales grew by 10% in the first quarter. He said many factors could influence the company's sales, including the duration of the Covid-19 crisis, the amount of economic stimulus and consumer confidence. Walmart bought the e-commerce company for $3.3 billion in 2016 to speed along its e-commerce strategy and better position the brick-and-mortar giant to compete with Amazon.cnbc.com
As states reopen the economy, Walmart CEO Doug McMillon sees bumpy road ahead
Americans lined up to buy goods at supermarkets like Costco Wholesale and Walmart as fears over COVID-19 pandemic in New Jersey, United States on April 18, 2020. As states lift stay-at-home orders, Walmart customers have started to shop for more clothes and discretionary items. The retailer is getting a bounce from stimulus checks and preparing to reopen shuttered parts of some stores, such as optical and auto care centers. But CEO Doug McMillon told analysts Tuesday that the retailer is prepared for a bumpy road ahead in the U.S. during the coronavirus pandemic, compared with the steadier recovery it's seen in China. Walmart reported a strong first quarter on Tuesday, with e-commerce sales growing by 74% and same-store sales up by about 10%.cnbc.com
CVS Health says it'll ramp up testing to 1,000 sites, so long as there's enough supplies, lab processing
A man directs vehicles as they arrive at a rapid COVID-19 testing site in Lowell, MA on April 07, 2020. Walmart, Target, Walgreens and CVS committed to hosting numerous drive-thru test sites in parking lots across the country. In a call with reporters in mid-March, Walmart's Executive Vice President of Corporate Affairs Dan Bartlett said the opening of more test sites has been delayed by supply issues. CVS has a total of five testing sites in five different states: Connecticut, Georgia, Massachusetts, Michigan and Rhode Island. They are using Abbott Laboratories' rapid testing device, which allows patients to get test results in minutes.cnbc.com
Trump asks Walmart, Target and other retail giants to help tackle the coronavirus crisis
Trump spoke Friday flanked by the CEOs of Target, Walmart, Walgreens and others as he updated the country on the government's response to the virus. Trump lauded the CEOs as "celebrities in their own right" and praised their companies as the greatest in the world. The executives, like Walmart chief Doug McMillon, said they will help America ramp up its testing by offering space in their parking lots. "After you tapped me to lead the White House coronavirus task force, Mr. President, you said, 'this is all hands on deck'. Citigroup CEO Michael Corbat said during the banks' meeting with the White House "this is not a financial crisis."cnbc.com
Trump declares coronavirus national emergency, frees $50 billion for the fight
WASHINGTON (Reuters) - U.S. President Donald Trump on Friday declared a national emergency over the fast-spreading coronavirus, opening the door to $50 billion in federal aid to fight a disease he said could have an even greater impact on the country. Trump said his declaration of a national emergency will unleash the full power of the federal government to help states and territories in the fight. He urged every state to set up emergency centers to help fight the coronavirus. U.S. President Donald Trump declares the coronavirus pandemic a national emergency as Vice President Mike Pence listens during a news conference in the Rose Garden of the White House in Washington, U.S., March 13, 2020. Alongside Trump was Anthony Fauci, the National Institutes of Health expert who is on Trumps coronavirus task force.feeds.reuters.com
Trump asks Walmart, Target and other retail giants to help tackle the Coronavirus crisis
Trump spoke Friday flanked by the CEOs of Target, Walmart, Walgreens and others as he updated the country on the government's response to the virus. Trump lauded the CEOs as "celebrities in their own right" and praised their companies as the greatest in the world. The executives, like by Walmart CEO and President Doug McMillon, said they will help with increasing testing capacity by offering space in their parking lots for drive-through testing facilities. With that statement, the companies said their focus is on serving not only its shareholders but all stakeholders, including customers and communities. None of the companies disclosed what financial impact, if any, the plan announced by Trump Friday would have on their financials.cnbc.com
Walmart CEO Doug McMillon wants to crack the code on apparel and home goods
Walmart's e-commerce efforts have paid off with a boom in online grocery orders. Walmart CEO Doug McMillon also touted the company's strong portfolio of brands, but said the company wants to sell more apparel and home goods. A customer who shops in Walmart stores and through the company's app or website spends two times as much as those who spend in stores only, he said. Along with buying e-commerce brands, Lore said Walmart has had success with homegrown labels. Some of its exclusive apparel brands have started online and later arrived to stores.cnbc.com
Walmart CEO Doug McMillon says 'too soon' to forecast hit from deadly coronavirus
Walmart isn't yet sure how much of a hit it will take because of the deadly coronavirus outbreak that started in China and has now spread across the globe. "It's not in our guidance," CEO Doug McMillon told CNBC's Courtney Reagan on Tuesday morning, on the heels of the retailer reporting its fiscal fourth-quarter and full-year results. "It's too difficult to tell at this early stage exactly how to forecast it," he said about the coronavirus. Other retailers ranging from Ralph Lauren to Under Armour have already said they expect to take a sales hit because of the coronavirus. Walmart has a market cap of about $334.5 billion, according to FactSetRead Walmart's complete earnings coverage here.cnbc.com
Walmart CEO Doug McMillon took bold stances in 2019. Next year he'll have an even bigger platform
After two deadly shootings at Walmart stores over the summer, Walmart CEO Doug McMillon made a surprising move. But the CEO of the biggest retailer in the world has been bolder this year than he traditionally has been in the past. Now, instead of focusing on the past, McMillon is "looking ahead, as he should," Henisz said. "I think Doug is trying to understand how all of its different cohorts impact Walmart in the long term." Those cohorts would include Walmart workers, investors and the communities situated around Walmart stores.cnbc.com
Black Friday could bring relief rally for beaten-up retailers like Home Depot, market history shows
Still, a relief rally could be looming for some of the hard-hit retailers like Home Depot, based on a CNBC analysis of recent Black Friday period trading history, conducted using the Kensho hedge fund analytics tool. The SPDR S&P Retail ETF, the XRT, fell by nearly 2% on Tuesday, with disappointing results from Home Depot and Kohl's pressuring the sector. Home Depot and Kohl's both reported a miss on revenue, while lowering their full-year forecasts. But over the past 5 years, the S&P 500 Retailing Index, as tracked by the SPDR S&P Retail ETF, tends to perform well in the week leading up to Black Friday. Among the retail stocks that perform best in that period: Home Depot, as well as Wayfair and Costco.cnbc.com
Employees, investors force companies to act on climate change
The "Amazon Employees for Climate Justice" collective said in a statement Thursday that while the company's "Climate Pledge" is a win it's not enough. Investors managing assets worth $35 trillion this week urged companies and governments to act with the "utmost urgency" to combat climate change. Why it matters: The appointment comes at an inflection point for both Business Roundtable and Walmart. He committed to "keeping Business Roundtable CEOs at the forefront of constructive public policy debates." Business Roundtable said last month that America's corporations are responsible for improving society by serving all stakeholders ethically, morally and fairly.
US CEOs' new spokesman is from Walmart
Michael Cary/CNN(CNN) - Walmart CEO Doug McMillon on Thursday was named the incoming chairman of Business Roundtable, the prominent group of 192 chief executives representing corporate America's interests in Washington. McMillon, a Walmart lifer who became the company's chief executive in 2014, will serve a two-year term as Business Roundtable's leader beginning in January. He committed to "keeping Business Roundtable CEOs at the forefront of constructive public policy debates." The appointment of McMillon comes at an inflection point for both Business Roundtable and Walmart, the country's largest retailer and private employer. Last month, Business Roundtable said that America's corporations are responsible for improving society by serving all stakeholders ethically, morally and fairly.
Walmart pulls violent video game displays, but will still sell guns
Scott Olson/Getty Images(CNN) - Walmart is taking down displays of violent video games in its stores in the wake of recent shootings. But the company plans to still sell the controversial video games -- and guns. Walmart has previously promoted violent video games in its stores with displays that let customers play the games. Although some public officials, including President Donald Trump, have pointed to violent video games as a cause of the rise in gun violence, numerous studies have found no link between the games and actual violent behavior. Walmart does not sell assault-style rifles, nor does it sell handguns outside of Alaska.
Walmart CEO pledges 'thoughtful' response to El Paso shooting
A woman touches a cross at a makeshift memorial for victims outside Walmart, near the scene of a mass shooting on Aug. 3 which left at least 22 people dead, on Aug. 6, 2019, in El Paso, Texas. (CNN) - Walmart CEO Doug McMillon says the company will respond in a "thoughtful and deliberate" way to the recent fatal shootings at its stores. McMillon said he was in El Paso Tuesday meeting with employees and with first responders. He said the store manager in El Paso was leaving the store and ran back in when he heard the shots. "Our store in El Paso is well known as a tight-knit community hub for people in the region, where we serve customers from both sides of the border."