Walmart's Low-Cost Approach Wins Again
Walmart's (NYSE: WMT) fiscal first-quarter 2021 (ended April 30, 2020) results were strong, faring better than many other retailers that had to shut down their physical stores. Sure, management admitted that the coronavirus pandemic drove increased demand as people ran out to buy the company's goods. The Walmart U.S. business had a same-store sales (comps) increase of 10% and Sam's Club's comps rose 12%.
The pandemic didn't leave the company completely unscathed, however. Walmart temporarily raised hourly wages at U.S. fulfillment centers and paid special bonuses to all hourly associates.
Certainly, no one likes to see higher expenses, particularly at Walmart where costs are so important to the business' success. However, this shouldn't concern investors.
Source Fool.com
