This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Walmart on Wednesday announced it is promoting Chief Audit Executive Dwayne Milum, 50, to serve as the retailer’s controller and senior vice president, effective Feb. 1, according to a Securities and Exchange Commission filing.   Milum, who joined the Bentonville, Arkansas-based retail giant just over two decades ago, will serve as its principal accounting off ...

Core Insights - The Zacks Retail – Supermarkets industry is capitalizing on consistent consumer demand and enhancing AI-driven omnichannel strategies to improve convenience, efficiency, and personalization, which strengthens the competitive positions of major players like Walmart and Kroger [1][4]. Industry Overview - The industry encompasses supermarket retailers offering a wide range of products, including groceries, health and beauty aids, and household items, operating through various formats such as supermarkets, discount stores, and hypermarkets [3]. - E-commerce has significantly transformed the industry, with retailers enhancing pickup and delivery services to meet the rising consumer preference for online shopping [3]. Major Trends - Supermarket chains are focusing on integrating digital and physical retail to create a seamless shopping experience, investing in modern store formats and smarter inventory systems [4]. - The adoption of online grocery shopping remains strong, prompting retailers to accelerate digital upgrades and implement services like same-day delivery and contactless checkout [4]. - AI is increasingly central to operations, facilitating real-time inventory management and personalized marketing [4]. Consumer Demand - Grocery retailers benefit from stable consumer demand due to the essential nature of food and household staples, with both in-store visits and online orders remaining robust [5]. - There is a growing consumer preference for fresh, healthy, and locally sourced options, driving repeat purchases and prompting retailers to adapt their product assortments [5]. Profit Margins - Supermarket players face pressure on profit margins due to rising labor costs, store refurbishments, and significant spending on e-commerce and technology upgrades [6]. - Additional challenges include higher import tariffs and supply-chain disruptions, which inflate procurement costs [6]. Industry Performance - The Zacks Retail – Supermarkets industry ranks 98, placing it in the top 40% of over 250 Zacks industries, indicating strong near-term prospects [7]. - The industry has outperformed the S&P 500, with a growth of 28.8% over the past year compared to the S&P 500's 17.5% [9]. Current Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 34.48X, significantly higher than the S&P 500's 23.39X [12]. Company Highlights - **Walmart**: The company benefits from a diversified business model and a strong omnichannel strategy, leading to increased traffic and market share gains. The consensus estimate for Walmart's EPS is $2.60, with shares rising 29% in the past year [15][16]. - **Kroger**: The company leverages a customer-first strategy and a robust private label portfolio, with a consensus EPS estimate of $4.79. Kroger's shares have increased by 21% over the past year [18][19].

Core Viewpoint - The recent issue regarding "Sam's delivery personnel's electric vehicles overloaded with goods" has gained significant attention, prompting Sam's Club to release a statement on optimizing delivery personnel's safety measures [1][3]. Group 1: Company Response - Sam's Club emphasizes the importance of each delivery personnel's hard work and prioritizes their safety [3]. - The company is collaborating with various delivery platforms to enhance safety measures, including volume labeling management, order control for riders, cargo matching optimization, and intelligent dispatch systems to reduce safety risks [3]. - Sam's Club has begun implementing measures to match cargo with three-wheeled or four-wheeled vehicles in certain areas, with plans to expand these initiatives nationwide soon [3]. Group 2: Public Concerns - Several netizens have raised concerns about Sam's delivery methods, specifically criticizing the overload of goods on electric vehicles, which poses significant traffic safety risks [3]. - Users on social media have expressed their dissatisfaction, with one stating, "Sam's Club, you are too much," and sharing images showing delivery vehicles filled with packages [3]. - The nature of Sam's products, which are often large and heavy, makes it challenging to deliver them safely using electric vehicles, leading to potential imbalances and safety hazards [3].

Core Viewpoint - The article discusses the challenges faced by Sam's Club in China, particularly regarding its delivery system and market expansion strategy, amidst increasing competition and customer dissatisfaction with product selection [6][10][20]. Group 1: Delivery and Safety Concerns - Recent reports highlight safety issues with Sam's delivery personnel, who are seen overloading electric vehicles with goods, raising public safety concerns [6][10]. - In response to these issues, Sam's has announced measures to improve delivery safety by using three-wheeled or four-wheeled vehicles in certain areas, with plans to expand this initiative nationwide [6][8]. - The current delivery methods include "Express Delivery" (within 1 hour), "Citywide Delivery" (next-day delivery), and "Global Purchase," with partnerships including SF Express and Dada [8][9]. Group 2: Market Expansion Strategy - Sam's Club is shifting its strategy from targeting affluent suburban customers to expanding into urban centers and lower-tier cities, indicating a significant change in its market approach [6][16]. - The company plans to open 8 to 10 new stores annually starting in 2025, although this has not been officially confirmed [16]. - The rapid expansion has led to operational challenges, including issues with product selection that have sparked customer dissatisfaction, particularly with the introduction of more common brands [14][18]. Group 3: Competitive Landscape - Sam's Club is facing intensified competition from major players like Meituan, Alibaba, and JD, which have opened numerous discount stores in key regions [20]. - Despite the challenges, Sam's maintains a competitive edge in product selection and private label development, but must navigate increasing pressure from competitors [21]. - Analysts suggest that while Sam's may have a five-year window of opportunity, it must adapt its service capabilities to keep pace with its expansion efforts to maintain customer trust [21].

AI & Transaction Verification - Walmart partnered with OpenAI to enable in-chat purchases, turning ChatGPT into a transactional interface [1] - AI can now fulfill user requests, fill carts, and complete checkouts [1] - The industry needs a way to verify AI's actions when executing transactions [1]

Core Insights - The article highlights the growing concerns regarding product safety and quality control at Sam's Club, particularly affecting middle-class families who have relied on the brand for trusted products [1][10][25] Group 1: Product Safety Issues - Recent administrative penalties from the Shanghai Market Supervision Administration revealed that a FILA children's scooter failed safety standards, raising alarms among parents [2][6] - The problematic batch of scooters included 64 units, with 61 already sold, indicating that over 95% of the defective products had reached consumers [6] - Another product, a Lenzing Tencel children's three-piece set, also failed to meet national standards for color fastness, posing potential risks for infants [7][9] Group 2: Consumer Trust Erosion - The frequency of quality control issues has led to a significant erosion of consumer trust, particularly among middle-class families who previously viewed Sam's Club as a reliable source [10][18][25] - Instances of foreign objects found in food products and complaints about poor customer service have further fueled dissatisfaction [13][24] - The shift from high-end to more generic products has been noted by long-time members, contributing to a sense of betrayal [21][24] Group 3: Business Performance and Strategy - Sam's Club has experienced rapid growth, with a reported 30.1% increase in net sales year-over-year and membership numbers exceeding 9 million [19][21] - The new CEO's strategy focuses on supply chain efficiency and cost control, which may compromise product quality in favor of rapid expansion [21][24] - The imbalance between scale and quality has resulted in systemic risks, as the company struggles to maintain its quality control standards amid aggressive growth [24][30] Group 4: Market Dynamics - The changing landscape of retail, with increased competition from e-commerce and local membership stores, has provided consumers with more options, reducing their reliance on Sam's Club [29][30] - The emotional connection that middle-class families had with the brand is being tested, as safety concerns for children's products become paramount [28][30] - The article suggests that the initial reasons for paying the membership fee are being questioned, as consumers weigh the value of quality against the risks of compromised safety [31]

盛秋平指出，我们欢迎包括美资在内的外资零售企业在华依法合规经营、分享中国大市场发展成果。 丹·巴特利特表示，沃尔玛高度重视中国市场，认为全球各国应相互贸易，合作共赢。沃尔玛愿继续深 耕中国零售市场，为消费者提供更好服务。 10月16日，商务部副部长盛秋平会见沃尔玛全球公司事务副总裁丹·巴特利特。双方就当前中美经贸关 系背景下美资零售企业在华发展等议题进行了交流。 盛秋平表示，跨国公司在双边经贸合作中发挥着重要作用，也承担着重要责任。沃尔玛是中国最大的外 资零售企业之一，也是美国最大的零售企业，希望沃尔玛积极发挥跨国公司国际影响力，尊重市场规 律、维护市场规则，扩大在华采购。 ...

Core Insights - Beyond Meat Inc. is experiencing significant market fluctuations, with recent performance indicating both challenges and opportunities for investors [1] Group 1: Company Performance - Beyond Meat reported a revenue of $106 million for the last quarter, reflecting a 30% decrease year-over-year [1] - The company has seen a decline in sales volume, attributed to increased competition and changing consumer preferences [1] - Despite the revenue drop, Beyond Meat is focusing on expanding its product line and entering new markets to drive future growth [1] Group 2: Market Trends - The plant-based meat market is projected to grow at a compound annual growth rate (CAGR) of 11% over the next five years, indicating a potential rebound for companies like Beyond Meat [1] - Consumer interest in sustainable and healthy food options continues to rise, which may benefit Beyond Meat in the long term [1] - The competitive landscape is intensifying, with new entrants and established food companies increasing their presence in the plant-based sector [1]

Core Viewpoint - Target's stock has experienced a significant decline of 65% since its peak in 2021, but it remains a strong long-term investment opportunity for dividend investors [1][8]. Group 1: Dividend History and Strength - Target has been recognized as a "Dividend King," having increased its dividend annually for over five decades, placing it among a select group of retailers [3][6]. - The trailing-12-month dividend payout ratio is around 50%, indicating that the dividend is likely secure despite the stock price drop [6][8]. - The board of directors raised the dividend in mid-2025, signaling confidence in Target's future despite current challenges [9]. Group 2: Market Position and Comparison - Target is positioned as an elite retailer, with Walmart being its closest competitor, although their operational strategies differ significantly [4][5]. - While Walmart focuses on "everyday low prices," Target aims to provide a more premium shopping experience, which can lead to greater vulnerability during economic downturns [5][12]. Group 3: Current Challenges and Opportunities - Target's stock decline has resulted in a historically high dividend yield of 5%, presenting a potential opportunity for capital appreciation if the company successfully executes a turnaround [8][11]. - The company has recently appointed a new CEO and shifted to a team-based strategy for oversight, indicating a proactive approach to addressing its challenges [10].

Core Insights - The cross-border e-commerce industry is undergoing a significant compliance transformation, moving away from its previous "wild growth" phase towards a more regulated environment [2][3][7]. Group 1: Regulatory Changes - Amazon has announced it will report Chinese sellers' identity and income information to tax authorities quarterly, with the first report due by October 31, covering transactions from July to September 2025 [1][5]. - Other major platforms like AliExpress and SHEIN have also initiated similar tax information reporting processes [1][6]. - The regulatory framework was established by the State Council's 2025 regulations, which extend reporting obligations to all foreign internet platforms serving Chinese operators [4][5]. Group 2: Industry Impact - The compliance requirements are expected to significantly impact cross-border e-commerce sellers, particularly smaller businesses that have historically operated in a gray area regarding tax compliance [3][7]. - The new regulations will likely lead to increased operational costs for sellers, including direct tax payments and indirect costs related to system upgrades and compliance measures [7][8]. - The industry is anticipated to experience a reshuffling, as non-compliant sellers may be pushed out, creating more market space for compliant businesses [8][9]. Group 3: Future Outlook - The cross-border e-commerce sector is expected to evolve into a resource-intensive, capital-intensive, and talent-intensive industry, indicating a shift towards high-quality development [9]. - Compliance will become a core competitive advantage, with businesses needing to focus on product innovation, brand building, supply chain management, and customer service to thrive in the new regulatory landscape [8][9].