Running through a tough fight with Amazon to defend its position as the largest retailer of US, Walmart won’t relinquish the title without a fight. While in-store is still relevant to consumers across generations, Walmart is betting high on its omnichannel model. Omni-channel is growing at 10% annually from 2011 to 2017.
In an omnichannel arrangement, it is of a great advantage to have a physical store in place. Walmart has got an upper hand in this space over Amazon. With Click-And-Collect it is attracting younger consumers of the 25-34 age group who drove 47% of online purchases the previous month. Among these, 42% identified Walmart as the pickup location for their last order compared to single digit percentages for others. Also, 34% of consumers added to their baskets when on site for their order pick up.
But among the purchases, the lowest rate comes from food and groceries at 7.8%. This shows that there is a huge untapped market which has not yet been penetrated by any of the key players. Especially when the consumer is adopting the online mode with open arms. Retail giants like Amazon and Walmart have a tremendous opportunity here to capture. The one who capitalizes it earlier, might get a bigger share of the pie and get crowned as the leader.
Walmart Adapting Technology
Not only this, but collaboration with companies like AutoX for next-generation innovative grocery delivery solutions can prove helpful. While Amazon has already stepped widely into this space with their Drone Delivery, Walmart is also looking forward towards driverless cars to deliver groceries for them.
While utilizing the latest technologies, like Blockchain, at their best, it is already pushing down its operational time to serve the consumers better and faster. Either way, One thing is clear for sure, Walmart is adding a cherry on the top for the consumers with their click-and-collect service. Which is working pretty well with their existing services and might help retain its leadership position.
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