FINA 4011 WMT Journal

FINA 4011 WMT Journal - Zakutansky 1 David Zakutansky...

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Zakutansky 1 David Zakutansky Professor Fitzpatrick FINA 4011 Wal-Mart Journal Key Issues: 1. Retail Sales 2. Opening/ Closing of stores 3. Unemployment 4. Supply Chain Innovation 5. Competition with grocery stores Date: 1/29/10 Event: Real GDP rises at 5.7% annualized, inventories rise 3.4% Importance: Mildly important – As companies such as Wal-Mart tie more and more money into inventories, the firm becomes exposed to losses on write downs, obsolescence, etc. Although Wal-Mart is strongly positioned against its competitors, the firm needs to pay close attention to inventory levels. Stock Reaction: WMT closed up 1.3% and rose with the overall stock market. Key Issues: Same store sales are affected here. If inventories are increasing, one should monitor how this affects Wal-Mart and its businesses. Economic health of the consumer is affected here as well. Businesses like Wal-Mart are increasing inventories with views that the future is brightening and consumers will increase their demand of consumer products. Source: Wells Fargo, Bloomberg, Yahoo Finance Date: 2/2/10 Event: U.S. same store sales fall 1.5% month-to-date for the week ending Jan. 30. Importance: Mildly important – This figure shows that those consumers buying at retail stores such as Wal-Mart have slowed their purchasing in the past week again. This is mainly due to a decrease in shopping after the holidays. However, this figure must be
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This note was uploaded on 04/08/2010 for the course ENGL 4000 taught by Professor Smith during the Spring '10 term at Saginaw Valley.

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FINA 4011 WMT Journal - Zakutansky 1 David Zakutansky...

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