Walmart's two-step strategy to fight Amazon begins to bear fruit

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The retail giant, Walmart, has come back a lot lately, as evidenced by a series of quarterly reports – including one this week – that confirm an increase in in-store and Internet sales.

Walmart reported a jump of 3.4% in US sales in the first quarter and 37% in online sales.

There was a time when Walmart was the big gorilla, taking control from one region to another, attracting buyers away from smaller retailers. This is how Walmart has made thousands of supermarkets and hundreds of billions of sales.

Total number of Walmart stores in the United States

Source: Statista.com 18/05/2019

Then came Amazon, another big gorilla, to slow Walmart's pace by attracting shoppers to his site.

But Walmart's management did not wait for Amazon to finish his job. He fought back with a two-step strategy. First, she recruited top talent in software development and acquired online retailers to expand her scopes and nbsp; scales online, to match the price and convenience of Amazon.

"We believe that WMT's strategy is to develop an integrated, channel-independent consumer offering that is equivalent to AMZN in terms of price and product momentum while respecting or beating convenience," said John Zolidis, analyst at actions.

Second, Walmart leveraged its vast network of stores to speed up online orders by shipping them from its stores rather than from remote warehouses, as was the case with Amazon.

And the choice offered to & nbsp; place orders online and & nbsp;picking& nbsp; place your goods in neighborhood stores, save time and avoid shipping costs.

It's something that Amazon misses.

By and large, Walmart has "turned the corner" on Amazon, pushing the online giant to expand, by acquiring traditional retailers like Whole Foods and by planning to open more grocery stores across the country to supply to markets not served by Whole Foods.

"The existing store base and distribution infrastructure strengthens WMT on AMZN and forms the basis of its ability to confidently deliver same-day, same-day or in-store delivery options for which AMZN is up, "continues Zolidis. ; "WMT is currently working to develop this capability and activate this offering for the majority of the country."

And the next step? "The next step will be to hammer the message through marketing that WMT allows the consumer to save money by offering a superior consumer offer without imposing onerous annual fees."

The Walmart revival shows that, instead of disappearing, brick and mortar retailing has come to complement and support online retailing. And a & nbsp; pushed & nbsp; Amazon to return to the world of the convenience store that he had once sought to eliminate.

Although it is still unclear which of the two giants will win the war, one thing is clear: consumers will have more choices as to which products to buy, when to buy them and when they will be delivered.

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The retail giant, Walmart, has come back a lot lately, as evidenced by a series of quarterly reports – including one this week – that confirm an increase in in-store and Internet sales.

Walmart reported a 3.4% increase in software sales in the United States for the first quarter and 37% in e-commerce sales.

There was a time when Walmart was the big gorilla, taking control from one region to another, attracting buyers away from smaller retailers. That's how Walmart ended up with thousands of hypermarkets and hundreds of billions of sales.

Total number of Walmart stores in the United States

Source: Statista.com 18/05/2019

Then came Amazon, another big gorilla, to slow Walmart's pace by attracting shoppers to his site.

But Walmart's management did not wait for Amazon to finish his job. He fought back with a two-step strategy. First, she recruited top talent in software development and acquired online retailers to expand her online offering and reach to match Amazon's price and convenience.

"We believe that WMT's strategy is to develop an integrated, channel-independent consumer offering that is equivalent to AMZN in terms of price and product momentum while respecting or beating convenience," said John Zolidis, analyst at actions.

Second, Walmart leveraged its vast network of stores to speed up online orders by shipping them from its stores rather than from remote warehouses, as was the case with Amazon.

And it offered the choice to customers who placed orders online and picked up merchandise in neighborhood stores, saving time and avoiding shipping costs.

It's something that Amazon misses.

By and large, Walmart has "turned the corner" on Amazon, pushing the online giant to expand, acquiring traditional retailers like Whole Foods – and planning to open more grocery stores across the country to meet the needs of its customers. markets not served by Whole Foods.

"The existing store base and distribution infrastructure is the arm of WMT on AMZN and forms the basis of its ability to confidently deliver same-day, same-day or in-store delivery options." AMZN is seeking to match, "continues Zolidis. "WMT is currently working to develop this capability and activate this offering for the majority of the country."

And the next step? "The next step will be to hammer the message through marketing that WMT allows the consumer to save money by offering a superior consumer offer without imposing onerous annual fees."

The Walmart revival shows that, instead of disappearing, brick and mortar retailing has come to complement and support online retailing. And pushed Amazon back into the world of the convenience store that he had once sought to eliminate.

Although it is still unclear which of the two giants will win the war, one thing is clear: consumers will have more choices as to which products to buy, when to buy them and when they will be delivered.