Investors are beginning to question Wal-Mart's growth strategy after the company announced a projected 6 to 12 percent drop in earnings for the 2017 fiscal year.
Shares nose-dived 10 percent on the announcement; the company's stock has gone down nearly 30 percent this year.
Wal-Mart's CEO Doug McMillon says these investments are part of a redesign strategy to appeal to the consumer: "But we wanted to make sure we had the right customer experience in place before we started telling everybody about it. And like we said to the analysts today as it relates to our investment, and our people and stores, to clean up your house before you invite people over."
Currently, Wal-Mart only brings in less than 3 percent of its total profit through online revenue. The question it now faces is whether a retailer so heavily invested in brick-and-mortar stores can make the transition to Internet commerce. (Video via Wal-Mart)
Meanwhile Amazon continues to surge ahead. It's currently exceeding Wal-Mart's market value by 30 percent.
Wal-Mart estimates a 3 to 4 percent annual growth rate in the next three years, but the jury is still out on whether a change in strategy will be enough to pacify the company's investors.
This video contains Getty Images.