Ronald Friedman, Co-Leader, Retail/Consumer Products Industry Group, Quoted in CBSNews.com Article, "5 Obstacles to a Walmart Turnaround."
By Jonathan Berr
Douglas McMillon has urged investors to be patient as he has tried to turn around Walmart’s (WMT) financial fortunes ever since he was named CEO of the world’s largest retailer in 2013.
Speaking Tuesday to Wall Street analysts, McMillon argued that the company’s objective is to improve its short – and mid-term performance while positioning the chain for long-term growth through efforts such as as raising employees’ wages and boosting Walmart’s e-commerce operations.
In theory, Wal-Mart was supposed to benefit from an improving economy and lower gas prices. However, in the words of a Federal Reserve paper, the economy was “shockingly weak” with first-quarter GDP growth of 0.2 percent. “He is just dealing with an economy that is very sluggish right now,” Ron Friedman, a Los Angeles-based retail consultant with Marcum’s National Retail/Consumer Products Industry group, told CBS MoneyWatch. “Walmart never delays orders. They push out delivery dates.”