Wednesday, February 03, 2010

Walmart Changes Its Organization To Focus on Ecommerce

Walmart has recently decided to focus its strategy on the Internet. While Carrefour’s CEO Lars Oloffson declared he is seeking for a partnership with an ecommerce leader to play a leader role in this market, Walmart is sure of its strength while speaking of online business. They have reset their organisation to focus on the ecommerce strategy.

Indeed, as the Financial Times article says, Walmart has a clear advantage upon its main competitor Amazon, as it owns a large number of retails settled all around the US.

One of the key figure of this article is actually that currently around 40 per cent of its US business is delivered to stores for pick up under its “site to store” service, which it sees as also augmenting in the future the development of smaller format stores.

The electronic goods market is clearly supported by the growth of online commerce, and therefore, there is no surprise traditional retailers must adapt their bid. Moreover, the multichannel trend is becoming more and more a challenge for both brick and mortar and pure players. Each of them need both a strong online presence and a real retail. This is also the reason why Carrefour have faith in a partnership with a pure player, as Carrefour could become a great asset for a e-retailer, to propose in store deliveries.

It is therefore determined to create a powerful ecommerce platform which would be adapted to the different local markets.