Profiting From Wal-Mart's Big Weakness

Wal-Mart (NYSE: WMT  ) is struggling these days, having reported shrinking sales last quarter. And one of the bigger factors dragging down its results has been soft sales of electronics.

In the video below, Fool contributor Demitrios Kalogeropoulos discusses two companies that are looking to profit while Wal-Mart attempts to get revenue growth going again in that business. Amazon.com (NASDAQ: AMZN  ) , for one, has been building out its warehouses so that quick shipments of heavy objects like TVs are getting more affordable for the online retailer. And GameStop (NYSE: GME  ) , which accepts trade-ins for used video game hardware, should see a big spike in sales as gamers cash out on their older systems so they can purchase next-gen consoles this holiday season.

Ultimately, though, innovation is what motivates shoppers to shell out for new devices. And with plenty of fresh products set to be released over the coming months, electronics sales should rise for all major retailers, including Wal-Mart. 

To learn about more retailers, like Amazon, with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.


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  • Report this Comment On August 31, 2013, at 10:57 PM, MichaelGentry wrote:

    Walmart biggest weakness is they have been international cheaters for a long time. They may or may not get away with it in the future.

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