If Wal-Mart needs to invest gross margin in maintaining market share the shareholder will be penalized. Given the large cash resources there are better things to do than cut price and screw shareholders.
E-commerce is outside of any core competencies that Wal-Mart may have. The low budget shopper can only buy cheap shoes once. On-line or bricks and mortar. So a strong on-line presence will hurt bricks and mortar stores.
75% of outlets are in foreign markets where Wal-Mart has operated for less than ten years. Return on capital has not meaningfully increased. Wal-Mart is not an established fixture in many foreign markets and can still blow its brains out. Look at red ink experiences in Germany, Korea and Japan. India is a big gamble and will prove to be disastrous.
George Gutowski writes from a caveat emptor perspective.