Why Walmart Must Focus On Stores And Logistics

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Walmart has announced the creation of a new delivery service in New Orleans, LA and Nashville, TN. If the pilot is successful, the customers will see the future of the future.

"Walmart US President" We're saving customers time by leveraging new technology and connecting all parts of our business to a single, seamless shopping experience, great shopping, easy pickup, fast delivery, and apps and websites that are simple to use. and CEO Greg Foran said in a statement. "We're serving our customers in ways that no one else can. Using our size and scale, we're bringing the best of Walmart to customers across the country. Spark Delivery is one way we're exploring how to get quality from our door to our customers' doors.

Walmart, along with the rest of the industry, is facing increased pressure from Amazon. Walmart is the largest grocery retailer in the US by sales and marketing.

To gain a better understanding of Walmart's new service delivery, I contact with the company, Bringg. Special thanks to Tamir Gotfried, General Manager, Americas for Bringg and Daniel Buchuk, Director of Communications, Bringg, for their assistance with this article.

Bringg is a leading delivery logistics management solution. Bringg's platform is using some of the world's best-known brands in more than 50 countries.

Companies from the retail, grocery, restaurant, consumer goods, logistics, healthcare and services industries have contracted to provide services and services to the customer.

Bringg's platform is used by Walmart to connect stores, drivers and customers and ensure that they work at peak efficiency. It provides the real-time visibility required to ensure that all deliveries are synchronized and that everyone involved.

One of its major advantages is that it is possible to have multiple geographically-dispersed locations, but even if they have multiple geographically-dispersed locations that use a wide variety of fleets, including in-house, third party and crowdsourced ones. Continuously optimizing drivers' time and schedule is key.

The platform optimizes the way in which orders are planned, batched, and assigned to a suitable driver. The right driver is the heart of the efficient operation. Bringg takes delivery, delivery time windows, and geo-location of drivers and customers.

Walmart's crowdsourced drivers, recruited through DDI, are a nationwide firm that specializes in last mile, management, are using Bringg's app to manage their list of deliveries, navigate to the respective destinations, and communicate with customers. In addition, Bringg allows drivers to communicate their availability and sends smart alerts (for example when there is a delay) to ensure dispatchers and drivers do not miss deliveries.

They are going to arrive, so they can prepare the order and load it quickly for the quick turnaround on the pickup. Automating the flow of communication between all parts of the market and the delivery process.

According to Gotfried:

At Bringg, we believe in data sharing and openness between brands and the third parties delivery is not necessarily an alternative to third party delivery services. we enable and empower retailers to orchestrate their full visibility.

Obviously, this gives them control over their logistics operations, including the customer experience, analytics, and fleet efficiencies. Ultimately, it can get tricky when a retailer is fully dependent on a single fleet, especially when it is not their own. However, the industry is moving towards new models that combines in-house fleets, delivery partners, and crowdsourced fleets to orchestrate an increasingly complex delivery matrix.

This means that they are not dependent on a single fleet or partner, and they are giving them the opportunity to deliver better and faster experiences for customers – optimizing costs without compromising reach, capacity, or customer experience. "

Although I think highly of Bringg, I am still convinced that Walmart's last mile is too tactical. In addition, I believe Walmart is needed to make a lot of money.

The Last Mile Remains A Challenge

Full disclosure: I have had extensive discussions with executives of Walmart who have reached me over the years of the last mile. Other topics I have discussed with Walmart executives and M & A. I was not a paid consultant but I was always willing to share my ideas when asked for my opinion.

Starting in 2010, I started writing and publishing research papers. Among the arguments I made was that with 4,700 Walmart stores, 597 Sam's Clubs, and 90% of the U.S. population located within 10 miles of a Walmart store, Walmart has the optimal physical retail footprint and distribution network for the last mile of U.S.

Even though its true that Walmart's supply chain and distribution network is focused on delivering pallets of products and services, Walmart can invest capital to supplement its network with e-commerce fulfillment centers.

The idea that Walmart is somehow a disadvantage because its logistics network is primarily focused on shipping pallets and not packages is false. Walmart has options it can pursue its strengths and close the gap with its competitors, primarily Amazon.

Walmart executives and consultants working for consulting firms are here at Walmart who will be more likely to start this conversation: "Tell me, Brittain, if you were the CEO of Walmart what would you do? Walmart do? " I answer all questions I would like to ask questions that I believe Walmart should answer:

1. What Big Moves in M ​​& A Should Walmart Make to Abolish Any Chance of Amazon's Outsourcing Walmart in Terms of Retail and Grocery Sales?
2. What is Amazon's biggest weakness?
3. What strategic partnerships should Walmart sign to disrupt Amazon?

The primary difference between Walmart and Amazon remains that Amazon embraces Thinking Big. When I use the phrase "crush all assumptions" or "Think Big, make a big move with Walmart executives or consultants supporting Walmart, invariably I am told" What are more manageable ideas that Tu as?"

I have never thought of it, but I have never thought of it. Achieving a quick win is often a false sense of accomplishment. I only believe in identifying and implementing optimal solutions that increase performance, increase customer experience and add value.

On the topic of last mile delivery, the recommendations

1. Create a program in the store by Walmart. Associates can deliver groceries and general merchandise. Note: According to news reports, Walmart has been tested using associates to deliver products only to the program. For the record – I vehemently disagreed with the way Walmart ran the program and I view Walmart's inability to utilize its associates to make deliveries to a colossal failure on the part of Walmart's executive team. Note to Walmart: Step back; reevaluate the program; perform root cause analysis to identify everything that failed; design a new operating model; and try again.
2. Walmart will lease a contract with the company to make deliveries in an assigned area. My recommendation is very similar to Amazon's recently announced delivery program.
3. Acquire Sear's Home Services and invest heavily to establish Walmart as the leader in solutions for the entire home, from appliance to interior and exterior upgrades, maid service, installing electronics, and helping customers understand how to create a connected smart home.
4. Acquire XPO Logistics and expand the last mile delivery capabilities of Walmart and Sam's Club. Leverage XPO to design and implement a digitally-enabled On Time, In-Full (OTIF) shipping program specific to the needs of Walmart suppliers. OTIF is critical to Walmart's success and far too many of Walmart's suppliers fail to achieve the needs of Walmart.
5. Acquire Menards and expand into home furnishings and the do-it-yourself market. Expand into heavy / bulky delivery using XPO. Integrate Sear's Home Services with Menards.
6. Focus on costs. DO NOT make products eligible for last mile delivery. Walmart will lose money to ship products.

Many companies have a need for a last mile. Instead of Walmart only focusing on its needs, the company should invest in establishing Walmart as a leader in contract last mile delivery and logistics. Density matters in the last mile.

Thinking Big At Walmart

I continue to argue that Walmart should make a strategic advantage for the company. From a strategy perspective, the move will make it easier for the United States to sign an agreement with the USPS. Sounds crazy, right? It's not.

Multiple studies ordered by the U.S. government have identified that privatizing the USPS is the best option to reduce costs, improve operations and increase customer experience. If the USPS is to be privatized, Walmart would be wise to do everything in its power to run the USPS and / or acquire the USPS.

University professors and supply chain consultants yew Walmart ran the USPS or acquired the USPS, Walmart's last mile delivery capability would be second to none. When combined with Walmart's network of 150 plus distribution centers, 4,700 stores and 597 Sam's Club's, Walmart would establish an almost impregnable competitive advantage in terms of last mile delivery.

In addition to Walmart, Amazon, FedEx, and the USPS are the most capable of running the USPS if a decision to privatize the USPS is made by the government.

More information related to the topic of Walmart or Amazon acquiring the USPS USPS related to government studies can be found here.

I have recommended to Walmart that it considers forming strategic partnerships. The company I recommend that Walmart partner is Home Depot if Walmart has no intention of acquiring Menards. Walmart and Home Depot have a common enemy in Amazon. In addition, Walmart and Home Depot have a need to greatly improve logistics and last mile delivery capabilities.

Home Depot plans to invest $ 1.2 billion to build 170 distribution facilities by 2023. Imagine the possibilities for supply chain and logistics if Walmart, Sam's Club and Home Depot collaborate? Let's take the idea one step further: Imagine if Walmart and Home Depot merge?

Note to Walmart: In my opinion, there are severe issues that exist within Walmart's supply chain. I strongly advise the company to make all necessary acquisitions and approve the supply chain improvement projects. Walmart will increase sales and retain customers by improving its supply chain and logistics. Cease and desist the arms race with online shopping. Focus on the supply chain.

Walmart and Home Depot could leverage a digitally enabled and integrated logistics network designed to maximize efficiency based on the Home Depot, Sam's Clubs and Walmart the needs of the contractors, online customers and stores.

Walmart would continue to run its cold chain and grocery distribution facilities. In Home Depot, Home Depot Rentals, Home Depot Rentals.

The value to Home Depot is that collaborating with Walmart on procurement, supply chain, energy and logist … Home Depot's costs but it allows Home Depot to increase the value proposition to its customers. If Home Depot and Walmart merged, customers of both companies would need to have a complete list of retailers.

Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart, Walmart An acquisition of men also has merit if Walmart does not want to collaborate with the Home Depot.

From the perspective of Thinking Big and Big Moves, other ideas I recommend Walmart consider the following:

1. Assess divesting Sam's Club. Cost is better than Sam's Club so it is necessary to make it better Sam's Club or divest the company and create a new operating model for bulk products. I'm not convinced Sam's Club is strategic to Walmart's future. Would Costco want to buy Sam's Club? No. I believe in PE firm like Sycamore Partners – owner of Staples – would be interested in acquiring Sam's Club as long as it was secure The Wild Cards that may be interested in acquiring Sam's Club? Google, Lidl Gold Alibaba.
2. Assess a merger with Costco or a strategic partnership. During a discussion at Amazon I was able to take a position. A combined Walmart – Costco would present Amazon with significant challenges. Note: Costco would acquire Kroger. Walmart and Costco have very different cultures. However, no one would disagree that a Walmart-Costco would be an extremely powerful and influential retailer.
3. Acquire the convenience store chain Buc-ee's and the nationwide chain.
4. Walmart powers e-commerce for each. Facebook has incredible potential as it relates to commerce. Imagine having the ability to shop online and perform first product searches from a Facebook user page or via Instagram?
5. Acquire Boxed Wholesale and rethink the entire bulk sales operating model.
6. Do not acquire Humana. Increase the strategic relationship between both companies with the need to invest trillions in capital.
7. Shrink internationally and place focus only on five key regions: USA, Canada, Mexico, China and India. Note: I have serious concerns about Walmart's India strategy. Exit all other international locations!

Walmart's cap is $ 280 billion. Amazon's market cap has surpassed $ 1 trillion. Many Wall Street analysts predict Amazon is the only company capable of becoming a $ 2 trillion company. Amazon can outspend Walmart no matter what Walmart attempts to do.

However, Walmart does not have a better Amazon than Amazon at all things. In fact, I have warned Walmart executives to avoid all costs. Walmart, Walmart failed. Walmart can not go out Amazon, Amazon.

Walmart simply has to be the best at two things – groceries and physical retail. Walmart can not beat Amazon at e-commerce and it's foolish to try. More importantly, its foolish if Walmart thinks it has to beat Amazon at e-commerce. It does not. Leverage the 80/20 rule when it comes to e-commerce.

If Sam Walton is back to life in the Amazon and Walmart, I have no doubt Walton would give this one piece to Walmart's CEO Doug McMillon company. Ever. Play to Walmart 's strengths – stores, groceries and logistics – and channel investments to those areas. Evaluate your strategy – if it does not play to Walmart's strengths, kill it. Today.

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Walmart has announced the creation of a new delivery service in New Orleans, LA and Nashville, TN. If the pilot is successful, the customers will see the future of the future.

"Walmart US President" We're saving customers time by leveraging new technology and connecting all parts of our business to a single, seamless shopping experience, great shopping, easy pickup, fast delivery, and apps and websites that are simple to use. and CEO Greg Foran said in a statement. "We're serving our customers in ways that no one else can. Using our size and scale, we're bringing the best of Walmart to customers across the country. Spark Delivery is one way we're exploring how to get quality from our door to our customers' doors.

Walmart, along with the rest of the industry, is facing increased pressure from Amazon. Walmart is the largest grocery retailer in the US by sales and marketing.

To gain a better understanding of Walmart's new service delivery, I contact with the company, Bringg. Special thanks to Tamir Gotfried, General Manager, Americas for Bringg and Daniel Buchuk, Director of Communications, Bringg, for their assistance with this article.

Bringg is a leading delivery logistics management solution. Bringg's platform is using some of the world's best-known brands in more than 50 countries.

Companies from the retail, grocery, restaurant, consumer goods, logistics, healthcare and services industries have contracted to provide services and services to the customer.

Bringg's platform is used by Walmart to connect stores, drivers and customers and ensure that they work at peak efficiency. It provides the real-time visibility required to ensure that all deliveries are synchronized and that everyone involved.

One of its major advantages is that it is possible to have multiple geographically-dispersed locations, but even if they have multiple geographically-dispersed locations that use a wide variety of fleets, including in-house, third party and crowdsourced ones. Continuously optimizing drivers' time and schedule is key.

The platform optimizes the way in which orders are planned, batched, and assigned to a suitable driver. The right driver is the heart of the efficient operation. Bringg takes delivery, delivery time windows, and geo-location of drivers and customers.

Walmart's crowdsourced drivers, recruited through DDI, are a nationwide firm that specializes in last mile, management, are using Bringg's app to manage their list of deliveries, navigate to the respective destinations, and communicate with customers. In addition, Bringg allows drivers to communicate their availability and sends smart alerts (for example when there is a delay) to ensure dispatchers and drivers do not miss deliveries.

They are going to arrive, so they can prepare the order and load it quickly for the quick turnaround on the pickup. Automating the flow of communication between all parts of the market and the delivery process.

According to Gotfried:

At Bringg, we believe in data sharing and openness between brands and the third parties delivery is not necessarily an alternative to third party delivery services. we enable and empower retailers to orchestrate their full visibility.

Obviously, this gives them control over their logistics operations, including the customer experience, analytics, and fleet efficiencies. Ultimately, it can get tricky when a retailer is fully dependent on a single fleet, especially when it is not their own. However, the industry is moving towards new models that combines in-house fleets, delivery partners, and crowdsourced fleets to orchestrate an increasingly complex delivery matrix.

This means that they are not dependent on a single fleet or partner, and they are giving them the opportunity to deliver better and faster experiences for customers – optimizing costs without compromising reach, capacity, or customer experience. "

Although I think highly of Bringg, I am still convinced that Walmart's last mile is too tactical. In addition, I believe Walmart is needed to make a lot of money.

The Last Mile Remains A Challenge

Full disclosure: I have had extensive discussions with executives of Walmart who have reached me over the years of the last mile. Other topics I have discussed with Walmart executives and M & A. I was not a paid consultant but I was always willing to share my ideas when asked for my opinion.

Starting in 2010, I started writing and publishing research papers. Among the arguments I made was that with 4,700 Walmart stores, 597 Sam's Clubs, and 90% of the U.S. population located within 10 miles of a Walmart store, Walmart has the optimal physical retail footprint and distribution network for the last mile of U.S.

Even though its true that Walmart's supply chain and distribution network is focused on delivering pallets of products and services, Walmart can invest capital to supplement its network with e-commerce fulfillment centers.

The idea that Walmart is somehow a disadvantage because its logistics network is primarily focused on shipping pallets and not packages is false. Walmart has options it can pursue its strengths and close the gap with its competitors, primarily Amazon.

A Wal-Mart tractor-trailer arrives at the company's regional distribution center in Hurricane, Utah. Walmart operates over 150 distribution centers throughout the United States. When compared to other retailers, Walmart has the most capable distribution network in existence goal Home Depot has plans to invest $ 1.2 billion to open 170 distribution facilities by 2023. Photographer: George Frey / Bloomberg News

Walmart executives and consultants working for consulting firms are here at Walmart who will be more likely to start this conversation: "Tell me, Brittain, if you were the CEO of Walmart what would you do? Walmart do? " I answer all questions I would like to ask questions that I believe Walmart should answer:

1. What Big Moves in M ​​& A Should Walmart Make to Abolish Any Chance of Amazon's Outsourcing Walmart in Terms of Retail and Grocery Sales?
2. What is Amazon's biggest weakness?
3. What strategic partnerships should Walmart sign to disrupt Amazon?

The primary difference between Walmart and Amazon remains that Amazon embraces Thinking Big. When I use the phrase "crush all assumptions" or "Think Big, make a big move with Walmart executives or consultants supporting Walmart, invariably I am told" What are more manageable ideas that Tu as?"

I have never thought of it, but I have never thought of it. Achieving a quick win is often a false sense of accomplishment. I only believe in identifying and implementing optimal solutions that increase performance, increase customer experience and add value.

On the topic of last mile delivery, the recommendations

1. Create a program in the store by Walmart. Associates can deliver groceries and general merchandise. Note: According to news reports, Walmart has been tested using associates to deliver products only to the program. For the record – I vehemently disagreed with the way Walmart ran the program and I view Walmart's inability to utilize its associates to make deliveries to a colossal failure on the part of Walmart's executive team. Note to Walmart: Step back; reevaluate the program; perform root cause analysis to identify everything that failed; design a new operating model; and try again.
2. Walmart will lease a contract with the company to make deliveries in an assigned area. My recommendation is very similar to Amazon's recently announced delivery program.
3. Acquire Sear's Home Services and invest heavily to establish Walmart as the leader in solutions for the entire home, from appliance to interior and exterior upgrades, maid service, installing electronics, and helping customers understand how to create a connected smart home.
4. Acquire XPO Logistics and expand the last mile delivery capabilities of Walmart and Sam's Club. Leverage XPO to design and implement a digitally-enabled On Time, In-Full (OTIF) shipping program specific to the needs of Walmart suppliers. OTIF is critical to Walmart's success and far too many of Walmart's suppliers fail to achieve the needs of Walmart.
5. Acquire Menards and expand into home furnishings and the do-it-yourself market. Expand into heavy / bulky delivery using XPO. Integrate Sear's Home Services with Menards.
6. Focus on costs. DO NOT make products eligible for last mile delivery. Walmart will lose money to ship products.

Many companies have a need for a last mile. Instead of Walmart only focusing on its needs, the company should invest in establishing Walmart as a leader in contract last mile delivery and logistics. Density matters in the last mile.

Thinking Big At Walmart

I continue to argue that Walmart should make a strategic advantage for the company. From a strategy perspective, the move will make it easier for the United States to sign an agreement with the USPS. Sounds crazy, right? It's not.

Multiple studies ordered by the U.S. government have identified that privatizing the USPS is the best option to reduce costs, improve operations and increase customer experience. If the USPS is to be privatized, Walmart would be wise to do everything in its power to run the USPS and / or acquire the USPS.

President Donald Trump has issued an executive order to the United States Postal Service and makes recommendations to the future of the USPS. Among the recommendations made by past studies is privatizing the USPS. (AP Photo / Nati Harnik, File)

University professors and supply chain consultants yew Walmart ran the USPS or acquired the USPS, Walmart's last mile delivery capability would be second to none. When combined with Walmart's network of 150 plus distribution centers, 4,700 stores and 597 Sam's Club's, Walmart would establish an almost impregnable competitive advantage in terms of last mile delivery.

In addition to Walmart, Amazon, FedEx, and UPS are the companies listed as being the most capable of running the USPS if a decision to privatize the USPS is made by the government.

More information related to the topic of Walmart or Amazon acquiring the USPS as well as information related to government studies related to the USPS can be found here.

I have also recommended to Walmart that it consider forming strategic partnerships. The company I recommend that Walmart partner with is Home Depot if Walmart has no intention of acquiring Menards. Walmart and Home Depot have a common enemy in Amazon. In addition, Walmart and Home Depot have a need to greatly improve logistics and last mile delivery capabilities nationwide especially for heavy/bulky items not easy to ship or deliver the last mile.

Home Depot plans to invest $1.2 billion to build 170 distribution facilities by 2023. Imagine the possibilities for supply chain and logistics if Walmart, Sam's Club and Home Depot collaborate? Let's take the idea one step further: Imagine if Walmart and Home Depot merge?

Note to Walmart: In my opinion, there are severe issues that exist within Walmart's supply chain. I strongly advise the company to make all necessary acquisitions and approve the budget for all required/identified supply chain improvement projects. Walmart will increase sales and retain customers by improving its supply chain and logistics. Cease and desist the arms race with Amazon in terms of growing the number of items carried online. Focus on the supply chain.

Home Depot and Walmart should explore a merger or at a minimum, collaborating across the supply chain and logistics. (AP Photo/Ted Shaffrey)

Walmart and Home Depot could leverage a digitally enabled and integrated logistics network designed to maximize efficiency based on the physical characteristics of products sold at Home Depot, Sam's Clubs and Walmart, as well as design and implement a best in class last mile delivery network to meet the needs of contractors, online customers and stores.

Walmart would continue to run its cold chain and grocery distribution facilities. In a collaboration or merger with Home Depot, groceries could be introduced inside select Home Depot locations including curbside pickup of groceries.

The value to Home Depot is that collaborating with Walmart on procurement, supply chain, energy and logistics greatly reduces Home Depot's costs but it allows Home Depot to increase the value proposition to its customers. If Home Depot and Walmart merged, customers of both companies would essentially have all of their retail needs fulfilled from just two retailers.

Consultants I spoke with currently supporting Walmart, and consultants from firms that do not have a relationship with Walmart, believe a merger of Home Depot and Walmart offers exceptional possibilities and is well-worth exploring. An acquisition of Menards also has merit if Walmart doesn't want to collaborate or merge with Home Depot.

From the perspective of Thinking Big and Big Moves, other ideas I recommend Walmart consider are the following:

1. Assess divesting Sam's Club. Costco is far superior to Sam's Club so either make the necessary investments to improve Sam's Club or divest the company and create a new operating model for bulk products. I'm not convinced Sam's Club is strategic to Walmart's future. Would Costco want to buy Sam's Club? No. I believe a PE firm like Sycamore Partners – owner of Staples – would be interested in acquiring Sam's Club as long as it could secure additional PE firms to participate in a bid. The Wild Cards that may be interested in acquiring Sam's Club? Google, Lidl or Alibaba.
2. Assess a merger with Costco or a strategic partnership. During a discussion at Amazon I raised the possibility of such a merger taking place. A combined Walmart – Costco would present Amazon with significant challenges. Note: A more likely scenario is that Costco would acquire Kroger. Walmart and Costco have very different cultures. However, no one would disagree that a combined Walmart-Costco would be an extremely powerful and influential retailer.
3. Acquire the convenience store chain Buc-ee's and scale the chain nationwide.
4. Form a strategic partnership with Facebook and Instagram whereby Walmart powers e-commerce for each. Facebook has incredible potential as it relates to commerce. Imagine having the ability to shop for products online and perform first product searches from a Facebook user page or via Instagram?
5. Acquire Boxed Wholesale and rethink the entire bulk sales operating model.
6. Do not acquire Humana. Increase the strategic relationship between both companies without the need to invest billions in capital.
7. Shrink internationally and place focus only on five key regions: USA, Canada, Mexico, China and India. Note: I have grave concerns about Walmart's India strategy. Exit all other international locations!

Walmart's market cap is $280 billion. Amazon's market cap has surpassed $1 trillion. Many Wall Street analysts predict Amazon is the only company capable of becoming a $2 trillion company. Amazon can outspend Walmart no matter what Walmart attempts to do.

Amazon's stock price is shown on an electronic screen at the Nasdaq MarketSite. Amazon became the second publicly traded company to be worth $1 trillion. Walmart must avoid getting into an arms race with Amazon and Walmart must avoid trying to copy Amazon. Walmart must play to its strengths. (AP Photo/Mark Lennihan)

However, Walmart doesn't have to outspend Amazon or try to be better than Amazon at all things. In fact, I have warned Walmart executives to avoid at all costs to try and copy Amazon. Companies that attempted to out Walmart, Walmart failed. Walmart can't out Amazon, Amazon.

Walmart simply has to be the best at two things – groceries and physical retail. Walmart cannot beat Amazon at e-commerce and it's foolish to try. More importantly, its foolish if Walmart thinks it has to beat Amazon at e-commerce. It doesn't. Leverage the 80/20 rule when it comes to e-commerce.

If Sam Walton came back to life for just one day and evaluated the current state of affairs between Amazon and Walmart, I have no doubt Walton would give this one piece of advice to Walmart's CEO Doug McMillon: Never attempt to play to the strengths of another company. Ever. Play to Walmart's strengths – stores, groceries and logistics – and channel investments to those areas. Evaluate your strategy – if it doesn't play to Walmart's strengths, kill it. Today.