What's holding back Walmart's growth?

Wal-Mart Stores Inc. has profited from rising prices over the past three years, with its stock more than doubling as the retail giant has seized market share from smaller competitors and even threatened the business of beauty retailers, dollar stores, and convenience stores as consumers seek more affordable goods. The company has also attracted more affluent shoppers and begun selling digital advertising. Analysts on Wall Street are having a hard time finding reasons for Wal-Mart to slow down as consumers increasingly opt for a few large retailers over smaller ones. Kelly Bania of BMO estimates that Wal-Mart, Sam's Club, and Costco Wholesale Corp. have captured 35% to 40% of U.S. food and consumer goods sales, and that trend is expected to continue as the company gains market share across income groups. Analysts at Bank of America expect Wal-Mart's massive food and grocery division to remain strong as shoppers continue to prioritize essentials and remain optimistic about its health and wellness business. Services such as digital advertising can help Wal-Mart offset weaker sales of goods outside of food and groceries.