Recent times have been incredibly hard for retail stores, and for good reason. Consumer spending habits are changing, and that change is taking a toll on brick and mortar locations. However, while some retail stores have been finding it hard at the moment, Walmart seems to be doing great. Today, we’ll talk about the change in tides that’s causing pain for the retail sector, why Walmart (WMT) is doing well anyway, and what binary options traders should be watching for ahead.

The Retail Sector Is Changing

As mentioned above, the retail sector has had a hard time in the market as of late, and for good reason. The truth is that consumer retail habits are changing, and in a big way. At the end of the day, the internet has made things easier for consumers, and in a big way. You see, these days, consumers don’t need to go to brick and mortar locations to buy goods. These days, consumers can just go online and purchase just about anything they want.

This has created issues for brick and mortar retail companies for two reasons. First and foremost, consumers are all about taking the easier way to do things. So, with easier ways to go about shopping, foot traffic in brick and mortar stores just isn’t what it used to be. This is cutting into sales.

However, it’s not just about convenience, it’s got to do with price as well. Let’s face it, no one wants to pay more for a product than they have to. Unfortunately for brick and mortar stores, overhead expenses are far larger than for online retail companies. This creates a bit more pain as bargain hunters are finding more bargains online because brick and mortar stores can’t afford to compete.

Why Walmart Is Still Doing Well

While Walmart is a brick and mortar retail company, the company’s stock has been finding its way upward. So, how is Walmart different from other brick and mortar retail companies? Well, there are a few pieces to that answer…

  • Global Reach – Walmart isn’t only a trusted brand in the United States, it is a trusted brand around the world. Therefore, the audience for Walmart is much larger than its competition, allowing the company to outpace its competition in the market.
  • Online Efforts – Walmart also does quite a bit of its business online, and over the years, seems to have changed its focus to continue doing so. These online efforts seem to be paying off in the eyes of investors who continue to push the stock upward.
  • Too Big To Fail – Finally, Walmart is one of the largest companies in the world, giving it a leg up in the market. After all, the company’s sheer size gives the appearance that it is too big to fail, making it a great investment option for those who want to take advantage of the gains.
  • Print Friendly, PDF & Email