All the richest billionaires are losing money. Bezos. Brin. Page, Zuckerberg, Ellison. Huang. However, the Waltons, children of Walmart (NYSE: WMT | WMT Price Prediction) founder Sam Walton, are getting much, much richer. As a group, the three children have seen their combined net worth grow from $27 billion this year to $430 billion, according to the Bloomberg Billionaires Index.
The reason for the run-up is simple. The stock market loves Walmart. The stock is up 11% this year. The market is down 7% (Based on its direction, it could go lower)
What’s to like about Walmart? When Americans feel pinched financially, why not go to the store with what many people think has the best prices? That is even true for groceries, which Americans continue to think are the long-term victims of inflation. CBS News reports that more middle-class people are shopping at Walmart and other discount stores. Neil Saunders, managing director and retail analyst at GlobalData, told the TV network, among middle-class people, “They don’t like the fact that more and more of their money is absorbed by essentials and the basics of life. So what has happened is they have sought out better value for money, and they’ve especially done that in grocery and household essentials.”
So, Walmart’s reputation is at the center of what draws customers. So is convenience. Walmart has 5,112 retail outlets. Ninety percent of US households are within 10 miles of one of these locations.
Walmart has been especially smart about using its large number of locations in a way that rivals Amazon cannot. Customers can order online and pick up their orders at the closest location. They can also order and have their orders delivered quickly. Alternatively, they can visit walmart.com for the standard e-commerce experience.
Walmart is currently the 12th-most-valuable company, with a market cap of $985 billion. The Walton family (which is more than just the three Sam Walton children) own 48% of the company.
Arguably, as the economy worsens, Walmart’s store traffic could increase.
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