Walmart's wobbly empire

Walmart CEO Douglas McMillon — handpicked by the Walton family last year — certainly has his work cut out for him

It is difficult to maintain the vision of the original Walmart
(Image credit: J.D. Pooley/Getty Images)

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What would Sam Walton think if he were alive to see Walmart today? asked Brian Sozzi at The Street. The founder of the 53-year-old big-box behemoth would probably be shocked to see that his "pioneering profit formula" — low operating costs and extra-discounted prices — "is now virtually impossible to maintain." The reason? The rise of Amazon and pressure from employees demanding higher wages. Walmart's normally stable stock plunged 11 percent last week — its biggest one-day drop in 17 years — after the company predicted essentially flat sales growth for this year and a possible 12 percent drop in profit for 2016. Between the investment necessary to compete online and the expense of higher wages, including a raise to $10 an hour for its lowest-paid workers that will cost $1.5 billion next year, Walmart's business model "is being smashed to pieces."

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