Wednesday, July 15, 2015

Walmart's Seeking For Innovations To Compete With Pure Players

I have posted quite a lot of articles about Walmart this year. Walmart has decided to compete with pure players online in order to earn marketshares in the Ecommerce battlefield, in order to grow its business. Indeed, it is difficult for Walmart to look for growth opportunities in the domestic brick & mortar business as they already have a strong leadership.

In order to get marketshares, Walmart is investing in new technologies and projects that will allow it to keep up with Amazon (its main online competition). Here are some of its projects as detailed by

Logistics: Leveraging its superstores to speed up Internet delivery: Some brick & mortar Walmart's superstores are used to prepare packages delivery in an effort to speed up the process. Thanks to its large network of stores, Walmart has tested the concept on 80 stores, which is the same number of distribution centers Amazon operates in the US. When we know that Walmart owns 4 500 stores, you can clearly see how this test could empower Walmart for its online Strategy. Furthermore Walmart has opened 4 automated distribution centers to prepare online orders.

Customer Service: Walmart to test Walmart Prime. To counter attack Amazon's Prime offer, allowing customers to subscribe to a service providing free delivery all year long, Walmart is testing free 3 day delivery. 

New Retailing Channel: Walmart is testing drive thru grocery service. The concept is thriving in France, and has been for the longest time, but it is pretty new in the US. By using this type of service, Walmart which actually has better expertise in the grocery business will have a clear edge on Amazon.

Category Management: Walmart is going to grow by 30% its online product range, to reach 10 million items. Obviously, it remains far from the 250 million items Amazon is retailing, but still a large product range will help Walmart to get in the competition.