Retail giant Walmart (NYSE:WMT) has been making several positive moves ahead of the holiday season, and its shares are currently hovering near their all-time price high. However, is the company well-positioned to maintain its market dominance, with increasing competition in the retail space? Read on.Shares of the world’s largest retailer Walmart Inc. (WMT), have gained 12.5% in price over the past six months and 3.7% over the past month to close yesterday’s trading session at $147.78. Its shares are currently trading 3.8% below their $153.66 all-time high, which they hit on December 1, 2020.
The Bentonville, Ark.-based company’s impressive performance can be attributed primarily to its increased focus on its omnichannel strategy. However, WMT continues to face intense competition from companies such as Costco Wholesale Corporation (NASDAQ:COST). Also, it is speculated that e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) plans to open department store-style locations, which could increase competition for WMT.
Nevertheless, we think WMT is well-positioned to continue gaining in the near term relying on its solid fundamentals. Back-to-school shopping is expected to help increase the company’s sales in the near term. In addition, it announced a new collaboration with the Justice brand in July 2021, bringing its popular tween assortment to market just in time for back to school. Furthermore, WMT has taken several steps ahead of the holiday season, anticipating increasing demand. Last month, it launched a delivery service, Walmart GoLocal, for other merchants throughout the United States. In addition, it announced on September 1 that it plans to hire 20,000 workers at its supply chain division ahead of the busy holiday season.