In a head-to-head battle with online rivals, America’s biggest retailer is falling short. Its fourth-quarter profit fell 7.9% compared to the same period a year ago, causing its stock to fall more than 4.7% on Thursday morning before trimming some of its losses. Walmart stock has declined nearly 25% in the past year, with its stock closing down 3% on Thursday at $64.12 a share.
Despite heavy investments in online shopping technology, Walmart reported that its e-commerce sales have been declining for the past year. Meanwhile, online behemoth Amazon saw a 26% increase in sales in the fourth quarter of 2015, the New York Times reported.
In January, the company announced that it will close 269 stores worldwide. Of those stores, 154 are located in the United States, where up to 10,000 workers could lose their jobs.
Walmart’s struggles are similar to those of many brick-and-mortar stores who struggle to compete with online retailers. Macy’s and Finish Line, an athletic chain, have also recently announced plans to close stores.
Walmart hasn’t given up on e-commerce though. Last year, it introduced a mobile payment application to link the customer experience between its physical and online stores. Company executives say they still plan to develop that service, as well as expand online grocery sales from the 20 markets where it’s already offered. It also plans to open as many as 405 stores worldwide, CNBC reported.