While retailers like Walmart (WMT) are facing pressure from shoppers concerned about the state of their discretionary income, one thing that often is not discretionary are their “fur babies,” or pets. And that is providing Walmart with new opportunities as it pushes further into the market for pet products and animal health.
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Walmart is making a big push into the pet market, opening up five new vet care and grooming centers. Last year, Walmart made its first move into this field, opening a pet services center in Atlanta, Georgia. Now, with the latest additions, there will be even more locations in Georgia, as well as in Arizona. The pet services operations will have a dedicated entrance, and will deal in mostly minor veterinary functions like vaccinations and exams.
The success of Walmart’s first venture on this front has led it to look into expanding the operation further. It also worked as a complementary good; around 25% of the customers in a recent survey had not shopped for pet supplies, like food, at a Walmart before.
Paris Hilton. At Walmart.
So for most of us, Paris Hilton is probably that vapid celebrity who showed up on all sorts of television back in the early 2000s. But she is also something of a marketing genius, as she has branched out into Walmart with a lifestyle brand she brought to the chain that focuses on inexpensive handbags.
Hilton’s connection to Walmart does not end there. She has also brought out everything from baby clothes to knife sets with her name on them. There is more to come, with plans to add bedding and makeup options at the lower-priced retailer.
Is Walmart a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 27 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 77.84% rally in its share price over the past year, the average WMT price target of $74.11 per share implies 6.41% downside risk.
