How can Walmart grow as a company
US retail chain: This is how strong Walmart wants to grow in e-commerce
The US retail chain Walmart wants to continue to pursue its e-commerce efforts. To this end, Walmart wants to invest billions in its digital infrastructure and is aiming for large growth rates.
Image source: fotomak / Shutterstock.com
“We will grow faster in e-commerce. This company will look more like an e-commerce company over time, ”said Walmarts CEO Doug McMillon last Thursday. The retail chain still runs “great stores” and knows how this business works. “Customers want a seamless relationship. That is to our advantage. But we have to build this e-commerce business in this country and other countries in order to be there in the future, ”said McMillon, according to Internet Retailer.
Walmart will therefore continue to invest in its e-commerce infrastructure. A budget of eleven billion US dollars is planned for this in 2017. In addition, Walmart will expand its digital offering and offer a larger range on Walmart.com. Instead of opening new branches, old shops are to be remodeled. In the second half of 2016, the company is already anticipating growth rates of 20 to 30 percent in digital sales.
Customers should be able to save money
The acquisition of the online marketplace Jet.com is believed to be a key factor in Walmart's online success. McMillon said his company could benefit from Jet.com's variable pricing model. This allows customers to save money when shopping, for example by accepting longer shipping times or by issuing a waiver for returns.
"One of the things that I'm particularly excited about and that Marc [Lore, founder of Jet.com] implemented at Jet, is this ability to let customers participate in the process," said McMillon. "I've always had the impression that if you show them where our costs are and they can make other decisions, they can keep the costs down for us and we could pass that on to them."
Walmart paid $ 3.3 billion for Jet.com
Walmart acquired Jet.com in August of this year for the handsome sum of 3.3 billion US dollars (we reported). With the takeover, Walmart also wants to strengthen its position vis-à-vis the major online competitor Amazon and strengthen its still weak online business. We highlighted the background to the takeover in OnAir # 31:
The strong competition with Amazon is also reflected in the fact that Walmart is repeatedly emulating the online company and, among other things, carries out its own discount campaigns on Amazon's special bargain days. Recently, however, it became known that Walmart is also looking for direct competition in another area: The company is apparently planning a fulfillment service for its marketplace dealers that is reminiscent of Amazon's FBA program. In addition, the company wants to win over successful dealers from other marketplaces in order to be better positioned in e-commerce.
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