Wal-Mart Gets Social with Facebook Integration

-2.91%
Downside
69.24
Market
67.23
Trefis
WMT: Walmart logo
WMT
Walmart

Wal-Mart (NYSE:WMT) has launched approximately 3,500 store-specific Facebook pages that would enable consumers to receive offers and updates from local Wal-Mart retail locations. The initiative is expected to increase Wal-Mart’s interaction with local communities and would help it to compete in the crowded online retail industry. Wal-Mart competes with other big retailers like Target (NYSE:TGT), Costco (NASDAQ:COST) and Best Buy (NYSE:BBY).

We currently have a Trefis price estimate of near $74 for Wal-Mart’s stock, implying a premium to the current market price.

See our full analysis for Wal-Mart

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Facebook Integration

The “My Local Walmart” Facebook application would enable Wal-Mart to send its approximately 9 million Facebook fans new product alerts, rollback alerts and invitations to in-store events, according to the company statement. [1] Walmart has been focusing to increase its online presence. It did see some success with its streaming video site, Vudu. Wal-Mart has a dedicated team, WalmartLabs, that focuses on creating technologies and businesses around social and mobile commerce.

Facebook has close to 800 million members and has a much broader reach. In today’s age, social media has emerged as one of the strongest mediums to connect with the consumers. Mobile commerce is proving very efficient in targeting customers with the recent upsurge in smart phone sales.

We believe Wal-Mart’s integration with Facebook to enable consumers to receive updates from local Wal-Mart centers would surely lead to an increase in online sales.

Related article: Wal-Mart’s Vudu Emerges as Legit Digital Movie Service, Trefis

Our complete analysis for Wal-Mart’s stock is here.

Notes:
  1. See: Wal-Mart Updates Facebook Status; Customers Can Now Like the Stores They Love On Facebook, Company Website []