>> When you're the world's largest retailer, you're expected to get it right during the most important time of the year. But Walmart hit a snag during the key end-of-the-year holiday shopping season. The retailer Tuesday posted profits that lagged expectations. And according to Reuters retail correspondent, Nandita Bose, investors were even more disappointed with the execution coming from the online business.
>> What was not expected is how Walmart dealt with its inventory situation during the quarter. So they actually stocked more seasonal items and less everyday items and in the process, they actually missed out on that sale. Which is really hard when you are the leader in inventory management globally, and then you are unable to tackle that during the most important quarter of the year.
Walmart shares plunged Tuesday, falling more than 9% in the biggest one day percentage drop in over two and a half years. Walmart has been pouring billions of dollars to beefing up its online business, and despite the recent setback, it's expected to stay the course.>> Investors recognize that Walmart is ready and willing to put in money into growing that business, and that's what they've been doing.
They've been investing in price, they've been investing in their assortment. I think investors see that. What they are really spooked by today is the fact that the performance was below expectations during a key quarter and the impression that it gives is that Walmart is willing but perhaps not prepared.
>> But Walmart is still doing better than any other traditional retailer when it comes to sales, online and in store. It's still lagging behind Amazon which is capturing just about half of all shopping dollars on the web.