4 Consumer Stock Stories Making Monday Waves
Wal-Mart Stores Inc. (NYSE:WMT): Closing price $74.78
In Wal-Mart’s exuberant desire to become America’s top beer retailer, it has been selling Budweiser, Coors, and other brands almost at cost in some stores. Internal documents seen by Bloomberg indicated that the markup on a 36-pack of Coors Light cans at a Los-Angeles-area store came to 0.6 percent, versus 16.2 percent for a package of Flaming Hot Cheetos. Retailers rarely divulge data regarding markups, so the March data allow an unusual glimpse of Wal-Mart’s alcohol pricing strategy.
The giant retailer’s move into beer is part of a plan to double alcohol sales by 2016, and grab a bigger piece of the domestic beer market, which is worth around $45 billion.