SANTA BARBARA, CA–(Marketwired – January 27, 2016) – CloudCommerce, Inc. (OTCQB: CLWD), a provider of advanced e-commerce services to leading brands, today commented on reports that Wal-Mart is closing 269 stores. For the company whose original growth engine was the big box store located in rural locations, the Wall Street Journal described the pivotal move as “rare“, and a further signal that online shopping is becoming more of a focal point for the retail industry giant.
Wal-Mart Stores Inc. CEO Doug McMillon announced that the world’s largest retailer would make an assessment of its fleet of stores and aim to become more nimble in order to handle increased competition from all fronts, including from their rival Amazon.com. Wal-Mart will now focus on supercenters, Neighborhood Markets, the e-commerce business, and mobile pickup services for shoppers. Wal-Mart has accelerated the development of its online grocery pick-up system, having observed that customers who buy groceries online spend roughly 50% more than comparable customers who shop only in the physical retail stores. Wal-Mart’s global e-commerce sales growth in Q3 2015 was nearly 10%, reportedly due to challenges in international markets, but Wal-Mart expects stronger growth as it progresses on it’s e-commerce focus.
In equally significant related news, Wal-Mart is reportedly Among the Top Companies Posting Jobs For Software Developers, on par with Amazon and other tech industry giants. In October, Oracle, Amazon, and Microsoft, made up four of the top five companies advertising for app developers, but Wal-Mart wasn’t far behind. Clearly Wal-Mart intends to compete with Amazon’s e-commerce dominance, thus attracting software developer talent would be instrumental in doing so. Available jobs for app developers rose 21% in the period between 2010 and 2015, as mobile app enthusiasm increased and as more retailers invested in mobile technology. From July to October of 2015 alone, Wal-Mart more than tripled its job postings for app developers.
“Wal-Mart’s recent actions demonstrate that it is only becoming more difficult to operate a traditional brick-and-mortar retail presence in this day and age,” said CloudCommerce CEO Andrew Van Noy. “They are clearly feeling the competitive pressure from all the more nimble online merchants who are doing such a great job these days. This should serve as a very important reminder to all online merchants that they must stay on their toes in order to compete. When such a large industry giant makes moves like this we absolutely must pay attention. This definitely strengthens our position and our business model as we continue to provide advanced e-commerce services to leading brands.”
E-commerce remains one of the fastest-growing industries in the world. According to market research firm eMarketer, global consumers will spend $1.672 trillion online this year, and by 2019, online purchases are projected to more than double to $3.551 trillion, which will include roughly 12.4% of overall retail sales worth $28.550 trillion. CloudCommerce has previously announced its plans to grow by making acquisitions similar to its purchase of Indaba Group that will be highly accretive to both top- and bottom-line financial results. The strategy mirrors that used by many other successful information technology firms, such as PFSweb Inc., Perficient Inc., and Cognizant Technology Solutions Corporation.
CloudCommerce, Inc. (CLWD) provides advanced e-commerce services to leading brands. Our customers depend on us to help them compete effectively in the $1.6 trillion worldwide e-commerce market. Our comprehensive services include: (1) development of highly customized and sophisticated online stores, (2) real-time integration to other business systems, (3) digital marketing and data analytics, (4) complete and secure site management, and (5) integration to physical stores. Our goal is to become the industry leader by rapidly increasing the number of customers who regularly depend on us and by acquiring other rapidly growing e-commerce service providers. To learn more about CloudCommerce, please visit www.cloudcommerce.com.
Matters discussed in this shareholder letter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These risks include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products, and prospects for sales, failure to commercialize our technology, failure of technology to perform as expected, failure to earn profit or revenue, higher costs than expected, persistent operating losses, ownership dilution, inability to repay debt, failure of acquired businesses to perform as expected, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.