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Showing Original Post only (View all)Walmart Is Falling Apart Before Our Eyes [View all]
Wal-Mart's high returns are falling like a rock
The most startling evidence of Wal-Mart's decline comes from Wal-Mart itself. Each year, the company provides a return on investment calculation for investors, which measures the profit Wal-Mart makes from the money it invests in stores, inventory, and other infrastructure.
You can see below that Wal-Mart's ROI is dropping rapidly since 2010, despite the broader economy recovering over that time.
If ROI continues to decline, Wal-Mart could become unprofitable very rapidly. Falling same-store sales and plummeting returns are how Sears, Kmart, or Montgomery Ward, became former retail icons that were eventually overtaken by competitors. These two trends can only last so long before something has to be done.
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