Walmart Casts Large Omni-Channel Net
By Hannah Ash, contributing writer
As Customer Habits Change, The World’s Leading Retailer Adapts
Walmart Stores, Inc. stated in its annual report released this month that 56 percent of its sales in 2014 came from the sale of groceries.Though Walmart’s Q4 earnings were down from the previous fourth quarter, the potential for substantial growth is on the horizon. In the wake of smaller consumer budgets and diminished food stamp benefits, the major retailer has identified a new trend: consumers are shopping more frequently for smaller purchases as opposed to the prior trend of large shopping trips once weekly or monthly. In a bid to break down the barriers and capture smaller sales, Walmart now has six different concepts operating under its sign.
Walmart Supercenters, the mainstay of the world’s largest retailer, typically occupy over 200,000 square feet of retail space and are located some distance from residential neighborhoods. Walmart’s new, smaller markets (occupying an average of 15,000 square feet) are going where the people are: the new outlets are located in residential and urban neighborhoods as Neighborhood Markets and Walmart Express in addition to the gas station/convenience store/quick-serve restaurant Walmart to Go. Though the retailer has been expanding its reach by opening smaller convenience-style markets for some time, following its Q4 earnings report it has taken a more aggressive approach and plans to double the amount of smaller stores it had originally planned to open. Other Walmart retail concepts include the original WalMart Discount Center and Sam’s Club.
Walmart appears set on defining itself as a true omni-channel retailer. In addition to its move into neighborhoods to capture more sales, Walmart is further expanding upon its retail commerce strategy by adopting a more aggressive multi-channel approach. Taking its same-day pickup feature one step further, Walmart has enables a location in Denver to offer customers a same-day pickup drive-thru option; Walmart is also considering rolling out drive-in pick-up centers exclusively to fulfill orders placed through its online channel. Other omni-channel initiatives include mobile checkout through its app and an online grocery delivery service. As Walmart embraces omni-channel retailing at full force, the major retailer undoubtedly has raised the barre on crafting a seamless customer-centric experience for its large customer base.