Walmart’s Race to Compete in the eCommerce Industry
In August 2017, Google Home announced its partnership with Walmart, branding it as Google Shopping Express using artificial intelligence to follow the trend of curbside delivery to its customers. Perfectly positioned to provide convenience and save customers time. This strategic announcement was made prior to the 2017 holiday season. Online sales rose a total 50 percent between quarter 3 and quarter 4 in 2017. Walmart saw the biggest growth in quarter 3 with an expected 40 percent overall growth by 2019.
Developments furthered when it acquired Jet.com a year prior to the Google Home announcement to leverage its digital eCommerce presence reaching younger generations. Jet.com’s innovation in its technology and use of Jet’s smart shopping cart method propelled the Walmart and Google Home partnership by reducing returns and packaging orders.
This is a pivotal change for Walmart in eCommerce to compete with Amazon. Walmart intends to maintain its overall presence with its brick-and-mortar stores to give the company a leg up with its eCommerce operations to maintain its omnichannel customer experience, financial and industry experts are calling this a productivity loop.
What happened on February 20, 2018?
The worst day for Walmart in three decades. Overall, Walmart saw its online sales drive down with a drop of 10% in its stock. The last time Walmart saw this was in January 1988.
What will decipher Walmart a part from its competition?
Spatialand may be the answer to give Walmart a competitive edge to compete against it biggest competitor, Amazon. In early February 2018, Walmart announced a partnership with Spatialand, an augmented reality startup. Founded by Kim Cooper, and Katie Finnegan who serves as the interim CEO for Spatialand overseeing the latest announcement of Walmart’s store No 8.
Although there is not a lot of information disclosed about Walmart’s latest acquisition of Spatialand, we are expected to continue learning about its new developments in 12 to 18 months on what this piece of technology can do for the shopper’s experience.
With a little more than three quarters left of 2018 will Walmart be the comeback kid of 2018?
A rough start to 2018 for Walmart with a raise in minimum wage and closure of Sam Clubs. What’s in store for the rest of 2018? Walmart expressed a new unveiling of its website. Their primary focus will be on fashion and home goods, adding private labels to increase its profit margins. The numerous changes Walmart made to restructure its business model is to continuously go head-to-head with Amazon, experts believe it took a short-term hit to Walmart. It had to redo its entire operation, inventory and leadership structure. Analysis say Walmart has a lot more to do to increase its eCommerce market.
Despite Walmart’s setback in early 2018 will not be a slowdown of what we will see with their growth in the omnichannel world, connecting online sales with brick-and-mortar sales. Walmart’s main competitive edge is friendly customer service in-store with access to pick-up, buy, and make returns. Send your comments to @Sellbery on Twitter.
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