Walmart stock price drops $2.19, analysts say
NEW YORK — Walmart stock price dropped $2 on Wednesday, after the retail giant announced a series of changes that would make it harder for retailers to sell their goods through its online sales platform.
Walmart, which has been under pressure for months over its online platform, said it will begin requiring customers to use a credit card to buy products.
Walmarts sales have declined for two straight quarters as competitors such as Amazon and Target cut prices and the company has been forced to cut prices in order to keep up with growing competition.
Its stock dropped $1.36, or 0.8%, to $62.93 in early trading.
Analysts said the new restrictions could have an impact on Walmart’s business, and the retailer is already struggling to survive as it attempts to grow its online business.
“They are making it very difficult to get your orders through and this could have a huge impact on business,” said Jeff O’Brien, chief investment officer at First Capital Advisors.
Amazon and Target have already begun phasing out the online sales service in the wake of the announcement.
The move to impose credit card fees is expected to hit Walmart’s bottom line as it tries to compete with Walmart’s rivals such as Best Buy, Amazon and Amazon Prime, which offer similar deals.
In addition to the online requirement, Walmart said it would begin restricting the ability of online retailers to use credit cards to sell items.
Walmarks stock price fell by $2, or 2%, to close at $62,861.