Wal-Mart Stores Inc. (WMT, Financial) announced Dec. 6 it is changing its corporate name to Walmart Inc., which it says is a reflection of the changing retail environment.
With increasing competition from Amazon.com Inc. (AMZN, Financial), Walmart has gradually shifted its focus to e-commerce. Propelled by its acquisition of Jet.com in 2016, it has bolstered its online ordering, created an app and implemented pickup and delivery services.
President and CEO Doug McMillon said the decision exhibits Walmart’s emphasis on serving customers seamlessly across its segments.
“While our legal name is used in a limited number of places, we felt it was best to have a name that was consistent with the idea that you can shop us however you like as a customer,” he said.
In the third quarter, the company reported online sales soared 50% while same-store sales climbed 2.7%.
Despite the name change, Walmart’s shares will continue to trade on the New York Stock Exchange under the ticker WMT. The change will go into effect Feb. 1.
With a market cap of $290.59 billion, Walmart shares closed at $97.27 on Wednesday. GuruFocus estimates the stock has gained approximately 41% year to date.
Disclosure: I do not own any stocks mentioned.
