Financial Management



Financial Management

WMT falls within the consumer staples sector which is typically a defensive or counter-cyclical sector. WMT operates as a discount (food, drug, and merchandise) retail company that is renowned for its ability to offer consumers “every day low prices”. WMT will typically see increased sales during downturns in the economic cycle (and throughout a recession), because consumers divert their spending from luxury goods to consumer staples that are necessary for every-day life. The demand for staples that WMT sells such as groceries, clothing, and pharmaceutical drugs is inelastic, that is consumers will continue to purchase these goods in ...