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While Amazon still accounts for about 50% of all online sales in the US, Walmart is gradually gaining a larger base. According to eMarketer, Apple surpassed Apple in 2018 to become the third largest online retailer in the country, behind Amazon and eBay. The market research group expects Walmart to complete 2019 with 4.6% of the US e-commerce market, up from 4% in 2018.
"Walmart has nailed the [question of]: "How are we going online?", Said Charlie O. Shea, senior retail industry analyst, "They do not build stores, but spend about the same way in terms of cap ex … enter e-commerce ".
Walmart's strategy for developing online is multiple.
He has added new articles to his website in several ways: by forming partnerships with brands such as Lord & Taylor for his high-end dresses, and Fanatics for his sportswear. She acquired online brands such as Moosejaw, which now has a home on Walmart.com, and then rolled out a grocery delivery service across the country. Food is an important part of Walmart's online business and the retailer plans to have 1,600 grocery store-ready stores and 3,100 grocery collection centers by the end of the year.
"I think the winning game in the grocery store will be ordered online, picked up in stores, and I think Walmart is best placed to do it," said Bill Simon, former president and CEO of Walmart. USA. "Do not underestimate the importance of grocery shopping for Walmart."
Certainly, Walmart still has room to improve its online business. He always tries to make the purchase of every Internet shopper more profitable. To do this, he has to sell more than grocery products, which have low margins.
Walmart is "building clothes [and] the home – essential business areas – which brings back customers and generates a positive contribution margin for the group. [shopper’s] basket, "explained McMillon.
The company recently launched its own home furnishing line, MoDRN, as an example. About a year ago, she deployed a number of refurbished internal clothing brands. He has also recently teamed up with celebrities such as Sofia Vergara and Ellen Degeneres for exclusive clothing lines at Walmart.
"The thing that takes more time than I would have guessed is to build this assortment of goods [on Walmart.com]McMillon said Tuesday. The company is trying to obtain a "reproducible and healthy online trading mix," he added. We speed up, we try to do it and we are disappointed that it took so long. "
Walmart is also focusing on the acquisition of so-called digital brands, such as Modcloth, Bonobos, Art.com and Bare Necessities, although they still do not significantly contribute to Walmart's online sales growth. , according to the company. Walmart's e-commerce executive in the US and founder of Jet.com, Marc Lore, hinted that Walmart may one day own more than 40 digital native brands.
According to McMillon, by making these acquisitions, Walmart "is pursuing a repetitive relationship with its customers." He said Walmart is "constantly" looking for potential contracts. "It is impossible to predict the pace [of these acquisitions] or the number, "he told analysts and investors.
Amazon, in its own quest for growth, has also invested in the creation of its own internal brands, but also in the attractiveness of new third-party sellers. But what many analysts say, the heavy weight of e-commerce is still missing, it's the base of thousands of Walmart's US stores.
"Long term, [Walmart] uses its size to confront Amazon, "said Liz Dunn, founder and CEO of Pro4ma, a forecasting tool for retailers." And it works. "
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