The Walmart Formula and Its E-commerce Push
WWD | December 22, 2020
As one of the world’s largest retailers, Walmart has steadily invested in its e-commerce technology, strategically buying businesses and utilizing its vast physical presence. With stores used as an expanding distribution center network and delivery fleet has allowed Walmart to grow into a viable competitor against Amazon, retail observers said.
With its e-commerce growth and expansion of customer services, the retailer has brought in a younger, more tech savvy shopper with greater disposable income, its chief executive officer Doug McMillon said.
During the pandemic, Walmart has consistently reported increases in e-commerce. In the third quarter alone, the retailer reported that its online business grew 79 percent.
One of the reasons the retailer has been able to leverage its physical network to support its online business is its dominance in grocery. Walmart fulfills its fresh grocery orders from individual stores, and it’s still been the largest grocery retailer in the U.S. for the last two decades.
Fine-tuning its mix of product categories, improving its shipping efficiency, and continuing to use consumer data to personalize offerings will be part of the equation, he said.