Douglas McMillon, the CEO of Wal-Mart Stores, Inc., defended his investments in labor, the store, and the web in a blog post on Wal-Mart's website.
The defense of his investment follows the market's reaction after the company forecasted lackluster sales growth for this year and dip in profits for next year.
McMillan defended his investments in the blog post and said that he is not surprised with how the market reacted to the company's forecasts.
"We're making significant investments in our people and technology," he said. "These investments are critical to our current and future success as a company. Simply put, it's the right thing to do."
McMillan adds in the blog post that Wal-Mart's growth plan roadmap is to focus on customers who shop not only in stores but also online.
"These shoppers spend more and shop more frequently and they are the kind of customers everyone is chasing," he said. "Good news is we already have a relationship with many of them."
McMillan adds in the blog post that their goal is to be first to deliver a "seamless shopping experience at scale."
McMillan projects their growth to be $45 billion to $60 billion over the next three years.
The New York Times adds that the retail giant experienced the biggest one-day price plunge in the company's stock in 17 years.
Wal-Mart's drop followed its latest forecast of lackluster sales growth and a steep decline in profit for next year.
The New York Times adds that the retail giant's problems were not something that appeared overnight, the same goes for its solution.
The company is facing challenges from formidable rivals in the online landscape.
The New York Times adds that the company is also facing higher costs while sales are flat.
Wal-Mart recently lets go of nearly 500 employees in its headquarters in Bentonville, Arkansas.
Investors fear the investments that McMillon made in labor, on the Internet, and in discounts, according to The New York Times.
Investors fear that these investments will weigh down the company's short-term earnings.
Michael Lasser, a retail analyst at UBS, told The New York Times that it is still unclear whether the company's investment will push it forward.
"Walmart expects a return from these wagers," he said. It is still "unclear if its investment of $1.5 billion in labor and 'several billion dollars' in pricing will push it ahead of others, or just keep pace."
McMillon said in the blog post that the steps the company is taking are not always easy.
However, he said that it builds the company's strengths that allow it to deliver a seamless shopping experience to its 260 million customers around the world.
