wnol.info July 25 2017


Wal-Mart to discount online-only items delivered to stores

July 25 2017, 08:42 | Alonzo Simpson

Wal-Mart to discount online-only items delivered to stores

Shopping carts are seen outside a new Wal Mart Express store in Chicago

Walmart's customers now have two choices: either they ship it to their home using the free two-day shipping program, or ship it to any Walmart store to pick up the product and save some more money. As previously reported, Walmart bought the online retailer Jet.com a year ago and rolled it into its e-commerce division. "So, our customers should share in those savings", he said. They must have connected data across channels and understand their customer patterns to drive larger and more profitable sales in-store and online. On the customer's side, pickup is not as hard as it would be with other e-commerce retailers - there is a Walmart store within 10 miles of 90 percent of the US population.

The discounts will begin next week on around 10,000 items that are only available online, the company said. Walmart's President and CEO of eCommerce Marc Lore wrote in a post announcing the move that in-store pickups at WalMart will dramatically reduce the bulk of costs associated with shipping.

For a $148 infant vehicle seat, the discount was $7.40 if customers picked up the item in the store, according to an example of a potential purchase suggested by the retailer.

Here's how it works: Customers shop an item notated with "pickup discount" and ship to their local store for pick up. If Walmart can use its own trucks to deliver those boxes to its stores, that strips out much of the cost.

Walmart says it is simply passing on savings from sending its fleet of 6,700 trucks straight from fulfillment centers to its 4,700 stores - instead of making home deliveries, which is expensive: "It costs less for us to ship to stores", Marc Lowe, Walmart's president and CEO for USA ecommerce said in a release announcing the move.

This week, Wal-Mart said it will be cutting hundreds of additional jobs and lowering certain online prices, but Wall Street still has mixed feelings about the retail giant's long-term prospects.

Walmart is rolling out a new discount program that arch rival Amazon can't possibly copy.

Since early 2016, Wal-Mart has cut more than 18,000 U.S.jobs through closing stores, trimming staffing at some store locations and cutting jobs at its headquarters.

The new pickup discount complements the Walmart's Online Grocery Pickup service, which is now in 600 stores.

The Walmart Pickup Discount was announced by Marc Lore, the President and CEO of its US eCommerce division, in a blog post. We note that in the said period the stock recorded 6.2% growth, outperforming the Zacks categorized Retail-Supermarkets industry, which showcased improvement of just 2.3%. "There is no path to profit in e-commerce for Wal-Mart as sure as I am sitting here".



Other news