New Wal-Mart CEO Looks to Fend Off Amazon

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Nov. 26 (Bloomberg) -- Forrester Research Vice President and Principal Analyst Sucharita Mulpuru discusses the outlook for Wal-Mart's new CEO with Deirdre Bolton on Bloomberg Television's "In The Loop." (Source: Bloomberg)

You, when walmart changes leadership at a time like this?

The biggest opportunity that they have is just to have a fresh perspective.

Someone who has been at the company for a while but who is younger than the previous ceos.

You have this nomination there with international business -- he has been in the u.s. business for a number of years, but has led the club business.

These other parts of the business that they need to propel forward.

There is big competition from dollar store.

Store line competition is really their bread and butter and where they need to focus the most.

I think that there is a lot of attention on the online sector, but they really need to make sure that they continue to meet demand in their stores first and foremost.

That is interesting that you said that because i was just going to ask you about the competition with amazon.

Our colleagues here at bloomberg business, the insider part of our analysts have said, looking at this graphic, the toys are cheaper.

If you compare walmart to some of the other retailers, walmart is cheaper, but if you compare to amazon, they are cheaper for a lot of items.

Does walmart need to address that?

That is absolutely something that is affecting the entire retail industry.

Amazon's price leadership.

About 15 years ago we did not think that anyone would eat walmart on price, but amazon has managed to do that.

As a business, amazon is obviously very important and a big player in the mass merchandise space.

A big player in every sector that play in.

The merchandising value in the u.s. compared to what is online, it is significantly larger.

There is a lot of catch-up that walmart would need to do.

At the same time, walmart needs to focus on it stores.

Other than beating amazon in price, there is a long way to go to try to catch up with a competitor 10 times your size in the online channel.

What about the fact that walmart only uses about two percent of its sales revenue coming from online?

I know that that is a big number because they are so big, but it seems like the number should be bigger.

For the life of me and a lot of folks in the industry, we still have not completely figured out why walmart is not as smart online as it is when you look at other brick and mortar retailers, who tend to have some kind of penetration.

Some retailers go as high as 20%. the fact that walmart is under penetrated as it is is definitely an obstacle for them to overcome.

Whether or not mcmillan will be

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


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