Why the Walmart, Kohl’s and Sears stores are struggling: They have too many employees
Posted On August 9, 2021
By MICHAEL BAGLEYHOUSEThe world’s largest retailer, home goods retailer and department store operator has seen its stock price fall more than 20% since the start of 2017.
Its shares have dropped by nearly 2% in 2017, the worst annual drop for a U.S. company.
The biggest reason for the slide has been Walmart’s efforts to reduce its workforce, which has seen it reduce its payrolls by more than 1 million people in the last two years.
Walmart has also announced it will cut 10,000 jobs across the U.K. and Europe over the next three years.
But its shares remain undervalued by more in the $5 billion range, according to Thomson Reuters I Know First.
The company’s stock fell 8% in 2016, but it rebounded and gained 8% to $52.43 by 2018.
It rose 4% in 2019 and 3% in 2020.
It fell 6% in 2021 and 7% in 2022.
The company’s total return was 8.3% in the 2021 fiscal year, which ended June 30.
Shares of Kohl and Sears fell 7% and 9% in 2018 and 2019 respectively.
The retail giant’s shares rose by nearly 1% over the past year.