Tuesday, April 5, 2011

Wal-Mart (WMT) Moves Up on Online Grocery Rumors

Wal-Mart (NYSE:WMT) moved up Monday on rumors it is contemplating launching an online grocery delivery service in California, as it searches for new same-store revenue growth.

The retail giant is also looking at the possibility of offering appliance for sale, which would drive revenue because they're big ticket items, although margins on these products aren't as high as other items.

Wells Fargo (NYSE:WFC) analyst Matt Nemer said about the possible online initiative by Wal-Mart: “Wal-Mart needs to get more serious about e-commerce.”

“Grocery delivery works in urban markets, and they already do it in the U.K., so they have experience.”

Wal-Mart spokesman Ravi Jariwala added, “Last year, we expanded our dry grocery assortment online and now offer breakfast items, beverages, snacks and candy for home delivery. As always, we’ll continue to evaluate our merchandise assortment to determine where we may expand and better serve our customers.”

Wal-Mart closed Monday at $52.65, gaining $0.52. or 1.00 percent.

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