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Wal-Mart Sees Decline In Online Sales Growth As Amazon's Online Sales Increase

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Wal-Mart Sees Decline In Online Sales Growth As Amazon's Online Sales Increase

Wal-Mart Stores, Inc. (NYSE: WMT) shares were falling in pre-market action after missing revenue consensus and lowering sales guidance for the first quarter of 2016.

However, the company also saw a slump in e-commerce growth from the third to fourth quarters, which could seem unusual in a holiday season. It might also worry investors who see Amazon.com, Inc. (NASDAQ: AMZN)'s command of the online sales market as Wal-Mart's main competition.

See Also: Wal-Mart Drops 5% Following Q4 Report, Lowered Sales Outlook

Wal-Mart reported e-commerce growth of 10 percent in the third quarter of 2015, but online sales only grew 8 percent in the fourth quarter.

In a fourth-quarter report released January 28, Amazon reported a net sales increase of 28 percent. Considering the fact that all of Amazon's sales are online, these reports reinforce Amazon's e-commerce dominance as Wal-Mart struggles to claim internet sales territory from the online retailer.

Benzinga reached out to a variety of e-commerce analysts for comment and had not received any at press time. Wal-Mart did not immediately respond to request for comment.

Wal-Mart shares were down about 4 percent at $63.51 before Thursday's open. Amazon was trending up a little more than 2 percent. Amazon shares are worth more than eight times as much as Wal-Mart's.

Posted-In: Earnings News Retail Sales Tech Best of Benzinga

 

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