NEW YORK (TheStreet) - JPMorgan says recently-appointed CEO Doug McMillon is working to shift WalMart's (WMT) growth strategy to offset fears that the company's revenue growth and comparable store sales have plateaued.
McMillon may be pulling back on WalMart's efforts to enter the grocery business, a business pushed by recently-retired CEO Mike Duke that has had mixed success, said a team of JPMorgan analysts led by Christopher Horvers in an investor report published July 7. Rather than attempting to sell low-price consumer goods, McMillon plans to emphasize WalMart's merchandising offerings, its e-commerce capabilities and its smaller-sized food markets, said the analysts.
McMillon's plan, while leveraging some investments made by Duke, appears to be a shift in strategy for the largest U.S. retailer. WalMart was adding 0.3% to $75.95, trimming its 2014 decline to 3.5%. The S&P 500
Last week, JPMorgan hosted a meeting between WalMart's top brass and Wall Street analysts in a rare private meeting for the retailing giant. On Monday, JPMorgan said it came away from the meeting with the view that McMillon is attempting to alter WalMart's growth strategy.
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