Filed under: Wal-Mart (WMT), Target Corp. (TGT), Entrepreneurs
Wal-Mart (NYSE: WMT) is insuring more of its workers. It does not seem to want to advertise that fact, but it is true nonetheless. According to The New York Times, “Wal-Mart, the nation’s largest private employer, provides insurance to 100,000 more workers than it did just three years ago — and it is now easier for many to sign up for health care at Wal-Mart than at its rival Target (NYSE:TGT), whose reputation glows in comparison.”
The world’s largest retailer is still offering less than half of its US workers healthcare benefits. The company plans more improvements with all workers being able to pick from a group of different plans by next year.
The move does not come without some potential risk for shareholders. Wal-Mart’s margins in the US are already pinched by slow same-store sales, high fuel costs, and a slowing economy. While insuring more people may be the right thing to do, over time it may not help the firm’s share price.
Being a Wal-Mart worker may be getting better than being an investor.
Douglas A. McIntyre is an editor at 247wallst.com
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