walmart-us-ceo-greg-foran states that the online grocery produces a "halo effect"



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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Walmart (WMT) saw the future and sells groceries on the web. "data-reactid =" 15 "> Walmart (WMT) saw the future and sells groceries on the Web.

The retail giant sees online grocery shopping and delivery as a critical element in efforts to expand popular service in its US stores.

Walmart does not escape the performance of stores offering online grocery services compared to stores that do not have them. Nevertheless, Greg Foran, President and CEO of Walmart in the United States, recently told Yahoo Finance that "it's clear" that customers appreciate the pickup and delivery of the races.

And they are not alone.

The benefits are "not only for customers who want to be able to order online and retrieve or order them online, but with an added benefit for those who are in the store," Foran told Yahoo Finance, ahead of Walmart. Meeting of shareholders.

"Because if you think about it, what we do in this business is that we are not just mass merchants, but also personal buyers," added Foran. "And it's a kind of oxymoron when you think about it."

"A halo effect"

The company's annual gathering draws a crowd of nearly 14,000 investors and associates to the retailer's home in northwestern Arkansas.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Walmart – who introduced for the first time a pilot program Online grocery end 2013 – is competing with Amazon in the online delivery business (AMZN), its toughest rival in the retail trade. In 2017, Amazon acquired Whole Foods under a $ 13.7 billion contract, added the Whole Foods delivery to its Prime service, and recently & nbsp;started reducing prices& nbsp; at the high-end grocery store. "data-reactid =" 23 "> Walmart, which had launched an online grocery pilot program at the end of 2013, is competing with Amazon (AMZN), its fiercest competitor in retail. In 2017, Amazon acquired Whole Foods under a $ 13.7 billion contract, added Whole Foods' delivery to its Prime service, and recently began cutting prices at the premium grocery store.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This September, Walmart & nbsp;has opened its thousandth place of care, and has since stepped up its expansion efforts. "data-reactid =" 24 "> In September, Walmart opened its 1,000th collection point, and has since stepped up its expansion efforts.

Foran told Yahoo Finance that one of the added benefits of running a web-based grocery store service is improving the operation of the stores.

"[It’s] a real skill to be able to do it, but as you develop the skills to become a personal buyer, you create a halo effect on the rest of your business because things have to improve. " said Foran.

With the pickup and grocery delivery, Walmart has trained thousands of personal work associates "who will literally pick up items for customers, which will be delivered to their homes," management said.

"They will have to make sure that every item on display is good enough for a personal buyer, so we see a halo effect in the store, and that's a real benefit," he added.

Walmart and Amazon are leading the way in online shopping.

In a recent note, Citigroup analysts found that Walmart stores with grocery pick-up and delivery had attracted new customers, led to larger baskets among service buyers, and increased availability. and product sales in these stores compared to non-offer stores.

"We believe that Walmart has become a true omnichannel competitor for Amazon and that its grocery initiatives are an important reason," wrote Gregory Badishkanian of Citigroup.

At present, 2,450 Walmart stores in the United States offer grocery shopping and 1,000 stores offer food delivery.

By the end of the year, Walmart expects 3,100 stores to be picked up and 1,600 same-day deliveries, covering approximately 80% and 50% of the US population, respectively.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A livestream of the event will be available on Yahoo Finance on June 7th."data-reactid =" 44 ">A livestream of the event will be available on Yahoo Finance on June 7th.

Look at the full interview below.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Julia La Roche is a finance reporter at Yahoo Finance. To follow her Twitter."data-reactid =" 50 ">Julia La Roche is a finance reporter at Yahoo Finance. To follow her Twitter.

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