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Walmart Rewards Employees, Unveils Another Special Bonus
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Amid all the coronavirus-led frenzy, Walmart Inc. (WMT - Free Report) has kept its operations going. The world’s largest retailer has, in fact, been witnessing burgeoning demand as consumers have been piling up stocks, especially essentials, amid the pandemic-led social distancing. As the company’s associates have been relentlessly working to cater to consumers’ rising needs, including speedy deliveries, Walmart has been rewarding them with special cash bonuses. To this end, the omnichannel retailer announced plans to offer another $428 million as special bonuses, which will take the company’s total year-to-date bonuses to $1.1 billion.
Walmart notified that it will reward its store, club, distribution center and fulfillment center workers with another round of special cash bonuses for their impressive services amid the crisis. This will include a bonus of $300 for full-time hourly employees and $150 for part-time hourly workers and temporary employees. Also, the company will give bonuses to drivers, managers and assistant managers at stores, DCs, FCs, clubs and Health & Wellness.
All U.S. workers (excluding salaried office employees) who have been appointed by management as of Jul 31 will qualify for the special bonus, which is payable on Aug 20. Notably, this marks the company’s third special bonus offered in 2020, taking the total year-to-date bonus to $1.1 billion in addition to the regular incentives given to frontline workers on a quarterly basis. This highlights Walmart’s commitment toward its employees who have been delivering services in these tough times.
Additionally, the company announced that Walmart stores and Sam’s Club locations will remain closed on Thanksgiving Day this year (Nov 26).
COVID-19 Bolsters Demand
Well, COVID-19 and the resultant social distancing have led consumers to stay indoors and just move out for essentials. This has spiked up the demand for toilet paper, disinfectants, masks, gloves, packaged water, infant supplies medicines, groceries and related staples. As a result of the surging demand, retail behemoths like Walmart have to restock their shelves faster than usual. Such trends also drove the company in first-quarter fiscal 2021, wherein both top and bottom lines improved year over year and beat the Zacks Consensus Estimate. Results gained from increased demand owing to the coronavirus-led stock hoarding.
Further, higher stay-at-home trends boosted e-commerce sales. Incidentally, the company saw a major rise in store pickup and delivery in March, which continued to elevate and reached its peak in April. Though store sales slowed down in early April, it reaccelerated in mid-April, thanks to government stimulus benefiting consumers. Markedly, Walmart saw its U.S. e-commerce sales surge as much as 74% in the first quarter of fiscal 2021, mainly on strength in grocery pickup and delivery, walmart.com and the marketplace. The company notified that it saw an increased shift to online shopping, given the higher stay-at-home trends. Certainly, the company’s long-drawn and concerted efforts to step up its online game paid off well.
Wrapping Up
Walmart is clearly focused on strengthening the business and delivering well even in the face of coronavirus. Further, the company’s dedication toward employee benefits is praiseworthy. While these raise the optimism, we cannot overlook the margins. Investments in pay and benefits, the shift in channel mix toward e-commerce and a decline in the sales of higher-margin discretionary items are likely to keep margins under pressure. Nevertheless, this Zacks Rank #3 (Hold) company’s robust endeavors to drive sales, especially in e-commerce, are likely to help it retain its growth story.
Shares of Walmart have gained 11.4% year to date compared with the industry’s growth of 10.6%.
Big Lots (BIG - Free Report) has a Zacks Rank #1 and a long-term earnings growth rate of 7.1%.
Dollar General (DG - Free Report) , which also carries a Zacks Rank #1, has a long-term earnings growth rate of 12.3%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Walmart Rewards Employees, Unveils Another Special Bonus
Amid all the coronavirus-led frenzy, Walmart Inc. (WMT - Free Report) has kept its operations going. The world’s largest retailer has, in fact, been witnessing burgeoning demand as consumers have been piling up stocks, especially essentials, amid the pandemic-led social distancing. As the company’s associates have been relentlessly working to cater to consumers’ rising needs, including speedy deliveries, Walmart has been rewarding them with special cash bonuses. To this end, the omnichannel retailer announced plans to offer another $428 million as special bonuses, which will take the company’s total year-to-date bonuses to $1.1 billion.
Walmart notified that it will reward its store, club, distribution center and fulfillment center workers with another round of special cash bonuses for their impressive services amid the crisis. This will include a bonus of $300 for full-time hourly employees and $150 for part-time hourly workers and temporary employees. Also, the company will give bonuses to drivers, managers and assistant managers at stores, DCs, FCs, clubs and Health & Wellness.
All U.S. workers (excluding salaried office employees) who have been appointed by management as of Jul 31 will qualify for the special bonus, which is payable on Aug 20. Notably, this marks the company’s third special bonus offered in 2020, taking the total year-to-date bonus to $1.1 billion in addition to the regular incentives given to frontline workers on a quarterly basis. This highlights Walmart’s commitment toward its employees who have been delivering services in these tough times.
Additionally, the company announced that Walmart stores and Sam’s Club locations will remain closed on Thanksgiving Day this year (Nov 26).
COVID-19 Bolsters Demand
Well, COVID-19 and the resultant social distancing have led consumers to stay indoors and just move out for essentials. This has spiked up the demand for toilet paper, disinfectants, masks, gloves, packaged water, infant supplies medicines, groceries and related staples. As a result of the surging demand, retail behemoths like Walmart have to restock their shelves faster than usual. Such trends also drove the company in first-quarter fiscal 2021, wherein both top and bottom lines improved year over year and beat the Zacks Consensus Estimate. Results gained from increased demand owing to the coronavirus-led stock hoarding.
Further, higher stay-at-home trends boosted e-commerce sales. Incidentally, the company saw a major rise in store pickup and delivery in March, which continued to elevate and reached its peak in April. Though store sales slowed down in early April, it reaccelerated in mid-April, thanks to government stimulus benefiting consumers. Markedly, Walmart saw its U.S. e-commerce sales surge as much as 74% in the first quarter of fiscal 2021, mainly on strength in grocery pickup and delivery, walmart.com and the marketplace. The company notified that it saw an increased shift to online shopping, given the higher stay-at-home trends. Certainly, the company’s long-drawn and concerted efforts to step up its online game paid off well.
Wrapping Up
Walmart is clearly focused on strengthening the business and delivering well even in the face of coronavirus. Further, the company’s dedication toward employee benefits is praiseworthy. While these raise the optimism, we cannot overlook the margins. Investments in pay and benefits, the shift in channel mix toward e-commerce and a decline in the sales of higher-margin discretionary items are likely to keep margins under pressure. Nevertheless, this Zacks Rank #3 (Hold) company’s robust endeavors to drive sales, especially in e-commerce, are likely to help it retain its growth story.
Shares of Walmart have gained 11.4% year to date compared with the industry’s growth of 10.6%.
3 Retail Stocks to Bet On
Kroger (KR - Free Report) has a Zacks Rank #1 (Strong Buy) and a long-term earnings growth rate of 5.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Big Lots (BIG - Free Report) has a Zacks Rank #1 and a long-term earnings growth rate of 7.1%.
Dollar General (DG - Free Report) , which also carries a Zacks Rank #1, has a long-term earnings growth rate of 12.3%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>