Real salesmen aren’t born, they’re made. At least, that’s what some people think, particularly those who engage in sales training. And Walmart (NYSE:WMT) is turning to sales training to help improve its performance on the floor, looking for help from an unlikely source: artificial intelligence (AI). That move didn’t sit well with investors, as shares dropped nearly 1.5% in Tuesday afternoon’s trading.
The rise of AI at Walmart, reports note, will begin in Canada, where some Canadian Walmart locations will have access to a new in-store artificial intelligence that provides insight on how to sell stuff. That “stuff” includes just about everything from bananas that are just ahead of rotting to seasonal items that need to be marked down for quicker sale before they’re largely useless due to weather conditions, like winter coats or swimwear.
Walmart employees won’t be called on for direct sales but will rather operate as appendages of the AI. They’ll scan products, like bananas or swimwear, and the AI can tell how close the bananas are to going bad or how close the swimwear is from needing a pre-fall markdown. The move should cut waste in stores and help improve Walmart’s bottom line.
Expanding on Virtual Sales
Walmart turning to AI for sales floor help might be bad enough—very much like Marshall Brain’s “Manna” novella—but it goes on from there. Walmart recently teamed up with Roblox (NASDAQ:RBLX) to bring the Walmart sales floor to the popular gaming platform. Users who go to the Walmart Discovered area will be able to actually buy products and have them shipped as though they were walking through a Walmart.
What Is the Forecast for Walmart Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 25 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 19% rally in its share price over the past year, the average WMT price target of $65.97 per share implies 11.17% upside potential.
Is WMT the Right Stock to Buy for Passive Income?
Before you hurry to invest in WMT, think about the following:
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