Walmart’s Omnichannel Investment Starts To Pay Dividends
During last week’s Q2 Earnings call Walmart shocked the investment world when it reported +9% sales growth vs. Q2’17, which was the largest YoY increase in over a decade. The main driver of Walmart’s growth was a +40% surge in eComm sales. These results have validated the billions of dollars Walmart invested to upgrade its digital infrastructure and given shareholders hope that the retail giant has finally found a way to compete with Amazon for online purchases.
To say Walmart has figured out eComm is an understatement. What they’ve really done is gone one step past eCommerce into a fully integrated Omnichannel model. Walmart’s strategy mingles owning standalone eTailers like Jet and Bonobos, becoming Google’s exclusive supplier for voice-based purchases, and even leveraging their physical stores to let customers pickup up online purchases. Next steps in their strategy will include automated in-store kiosks for product pickup and even a VR-based shopping experience power by a technology vendor called Spatialand.
It’s pretty amazing to see the transformation of the world’s largest B&M retailer into an eComm juggernaut within just a few years. Sam Walton would definitely be proud!