Walmart stock reportedly reached an all-time high on Friday (Nov. 3), with investors betting on the company’s ability to grow during the holiday season.
The all-time high was $166.30, the highest price since Walmart went public on the New York Stock Exchange in 1972, according to CNBC. report Friday (November 3).
According to the report, one of the key factors driving Walmart’s success is its dominance in the grocery sector. Walmart, the nation’s largest grocer, derives more than half of its annual revenue from groceries. This category remains essential to shoppers, even during economic downturns and inflation. While competitors like Macy’s and Target face challenges, Walmart has managed to maintain strong sales and draw foot traffic from grocery stores.
According to the report, Walmart is seizing the opportunity to attract new and infrequent shoppers as inflation continues, especially in groceries and household goods. The company has been able to attract more grocery shoppers from high-income households to its stores and website, including those making more than $100,000.
The report said Walmart is prioritizing improving the customer experience to keep up with technologically advanced rivals like Target and Amazon. The company plans to invest more than $9 billion to launch a fashion-forward clothing brand, revamp its website and app, and upgrade its stores across the United States. Additionally, Walmart has expanded its online offering by adding more products and luxury brands through third-party marketplaces.
Walmart’s strong e-commerce growth was also a notable achievement, according to the report. While many companies experienced declines in online sales as the COVID-19 pandemic recedes, Walmart has recorded double-digit e-commerce growth in its U.S. operations over the past two quarters. Initiatives like curbside pickup and delivery have made purchasing quick and easy for customers.
Investors have taken note of Walmart’s success, with the retail giant’s shares up more than 16% this year, the report said. This is outpacing the S&P 500 and the retail-focused ETF XRT.
The report comes four days after Walmart announced it was celebrating the grand opening of 117. renovated store Located across the United States, each store is designed to welcome people to a “more modern, highly connected Walmart.”
In another recent project, the retailer spotlighted the use of artificial intelligence (AI) and augmented reality (AR) technology to improve the shopping experience for consumers.