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Walmart races with Amazon

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Walmart is looking for ways to expand its business.

Walmart seems to be on high horses, as it emerges from the pandemic. To secure its spot on the e-commerce and retail market, it will launch a subscription service that resembles Amazon Prime.  

The Walmart Plus membership will cost $98 per year, according to sources familiar with the matter. The membership will include gas station discounts, same-day grocery delivery, and early access to bargains. 

The launch of the membership was initially planned for April but got postponed due to the pandemic.

From analysts’ point of view, it will be hard for Walmart to compete with Amazon, as it is only responsible for 5% of the overall online sales, while the latter accounts for 39%.

But the membership is not the only thing that Walmart is launching. The retail giant is looking to hire licensed insurance professionals as it is looking to expand its health insurance company established in 2019 – Walmart Insurance Services LLC. At the moment, it has four clinics that are dealing with primary care, but it is looking to give customers access to dental services also. 

The stock price fell 1.3% yesterday, but in today’s pre-market gained 0.85%. Overall, the stock price went up 5.4%, while USA30 lost 9%. USA500 dropped by 2.6%. 

Read more about the competitions between companies on CAPEX.com!

Sources: marketwatch.com, foxbusiness.com, cbsnews.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.