Case Study : Walmart Inc.

1229 Words Apr 30th, 2016 5 Pages
Walmart Inc. is a retail store with locations all over the country. It offers all kinds of consumer goods at affordable prices such as groceries, clothes, furniture, and household appliances. Walmart is able to do this because of its size and influence in the industry. As the top retail store in the country, it is able to negotiate better pricing deals with suppliers for their inventory hence keeping their costs down. A part of this benefit is passed off to the customer in the form of affordable prices.
Walmart is part of the big box retail industry with competitors like Costco, Home Depot, Target, and BJ Wholesale Club. Each of these companies use a slightly different regression model to forecast their revenue. We were unable to gain access to the current revenue regression models of Walmart so we came up with a model for the entire big box retail industry. To begin constructing our model, we researched previous revenue regression models used to forecast revenue for retail stores specifically big box retail.
We will now briefly discuss two major articles that we used to select our variables for the revenue regression model. The first article was a report by Mazzone and Associates Inc. which detailed the performance of the retail industry as a whole in 2015. The report was broken into segments namely: big-box and department store retailers, warehouse club and supercenter retailers, supermarkets and grocery store retailers, and E-tailers. Based on the report, we selected…

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