Can Doug McMillon Right Wal-Mart's Path?

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Feb. 20 (Bloomberg) -- Wal-Mart forecast profit this year that trailed analysts’ estimates as the sluggish U.S. economy and government benefit cuts threaten to restrain sales. Julie Hyman reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

About the cool tech economy.

This is a company that in the fourth quarter, we are talking about over $450 billion in sales.

It's fun to talk about but walmart is still the giant it was.

The company is coming out with earnings that met its lowered forecast.

Comp sales fell 4/10 of one percent.

They talked about the economy being week in the food stamp program got cut and that is hurting some of the walmart consumers.

The weather was an issue like for most retailers.

It is also having issues with its international division.

These are the different issues.

A lot of headwinds for doug macmillan.

Yes, what do you do about it?

They are trying to remain aggressive on price and offering different packaging of some items.

Maybe a smaller package and a smaller amount of stuff.

One of the other interesting things that walmart is doing is opening smaller formats.

You think of walmart as a huge door.

They are now planning to open 272 of their smaller format stores which includes neighborhood markets which is like a big grocery store and what's called walmart express which is a a convenience store.

There are only 20 of those so far.

Maybe you won't need your card.

Or you will need a basket.

The thing that people ride, what do you call that?

It's a little 4x4. julie is reporting on the walmart express stores where there are only 20 of them.

It's part of the walmart story.

We know it is a huge big-box store that is one of the weirdest social experiences you'll ever have.

It just shake your entire paradox of life.

Matt miller has been to a total of one walmart in his entire life.

It's like the movie "from dusk till dawn." one cool thing that walmart does is experiment with new things.

It is like this new truck they have developed, the wave rtruck.

It's got a tractor that is using hybrid technology and the trailer made of carbon fiber to save 4000 pounds of weight.

At this point, it's just a concept?

Yes, and they have built another -- other concepts trucks.

They want to double their fleet efficiency by anti-15. they are almost there.

They are using new trucks and packaging things in a different way.

How is this more efficient?

This uses hybrid power and reduces drastically the weight.

One thing they have been doing to double their efficiency is to reduce the weight and package more stuff into the same old trucks.

In canada, they have been using this cube truck but has the ability to package 40% more stuff.

It is real innovation.

It's important because walmart has one of the biggest truck fleets in the world.

They've got 7000 drivers in the country.

It's incredible when you look at that company and how they need to get around the world and around the country.

Have you only been to one walmart in your life?

There are no walmarts around here.

It was an amazing experience.

I want to go back with the camera.

They have very good deals and good pricing.

One thing they are talking about is that they are going to look at raising the minimum wage.

Gap came out and raised their wages.

The president would like to see a federal minim wage of $10.10 and walmart says they are looking at it.

On the call, the executives made it clear that this is something they are exploring.

They are not coming out and supporting the minimum wage and saying they don't want it.

They are exploring the balance.

They also said that less than one percent of their associates make the actual minimum wage.

You then get the ripple effect when that minimum wages increase.

If you talk about an employer's largest mall -- as walmart, if they come out and make a proclamation, that will carry some weight.

This text has been automatically generated. It may not be 100% accurate.


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