Can Walmart give a better customer experience after getting help from Goldman Sachs bankers?

Josh Fraser Mar 23rd, 2021 / Estated Episodes, Industry News, Walmart

Walmart Inc., the US-based multinational retail organization, has recently enlisted two Goldman Sachs bankers' support to establish its new fintech startup. In January 2021, Walmart collaborated with the foremost investment corporation, Ribbit Capital, for its new expansion.


The company expressed that the new venture will bring unique, tech-driven, and affordable financial products for Walmart's customers and colleagues. Furthermore, the reports say that Walmart has been looking for other revenue-generating opportunities, including financial services, health care and advertisement. Another Goldman banker, David Starkand the head of Goldman's consumer bank, Omer Ismail will be joining the retailer for the fintech startup.

Headquartered in Bentonville, Arkansas, Walmart has been the world's largest retail business with a turnover of $548.743 billion (as reported in the financial year 2020). Additionally, it is regarded as the world's biggest private employer with 2.2 million associates. It trades in the New York Stock Exchange with a market capitalization of $371.684 billion. It is on NASDAQ as WMT. According to Walmart, every week, with more than 265 million customers and employees visit about 11,400 stores and eCommerce websites across 26 countries.

Walmart's executives will serve as the board of directors of its new startup, involving Walmart U.S. CEO John Furner and CFO Brett Biggs. On the occasion of the investor day, CEO Doug McMillon said the largest global retailer would use its size and scope to boost sales in other fields, such as opening health-care clinics and converting customer data into targeted advertising. He added that Walmart's developing portfolio of products as well as its subscription service, Walmart+, will strengthen consumer loyalty and experience. To achieve this, Walmart expects to expand investments to around $14 billion in 2021, up from the company's standard annual rate of $10 billion to $11 billion.

This all shows that Walmart's step, absolving one of Wall Street's leading corporations of the talent at the forefront of its push into internet banking, demonstrates the retailer's seriousness about interlinking itself in the financial lives of the consumers. Moreover, the firm persists in being the industry leader in terms of sustainability, corporate philanthropy, and workforce openings.

The firm's stock has risen nearly 23% in the last year and reported a $35 billion rise in the annual revenue.

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