Walmart’s profits to drop as it drives cash into reviving its growth

Endaba Group

The US retail giant Walmart has suffered its worth share price decline in over 15 years. Walmart has been driving cash into its staff and ecommerce and these investments will continue into the next financial year, ending January 2017. Walmart has added c.$1bn to costs this year and will make a further $1.5bn dent next year. They raised base employee wages to $9 per hour in April, which will further increase to a minimum of $10 per hour next year. It has also expanded its staff training programme.

Analysts’ prediction of a drop as big as 12% prompted shares to fall by as much as 9.9% to $60.12 in New York. That is the retailer’s biggest drop in value since February 2000.