I saw a recent headline in Fortune that read, “Walmart is nabbing Target’s ‘Tar-jay’ rep as even the wealthy flock to the retail giant.” Not so fast. While I prefer Target’s in-store experience, online shopping is a whole different story. These recent headlines imply that Walmart is a store for lower-income shoppers, but this doesn’t tell the whole story. Income matters a lot less than online convenience and product availability. Thanks to a credit card benefit, I am a Walmart+ member. But when I’m searching for a specific product, I look at several websites, including Walmart, Target, and Amazon. If Walmart+ has the product at a good price and I can get it in a day or two, I buy it there. Shoppers of all types are always on the lookout for convenient experiences, enhanced by easy returns and overall efficiency. The bottom line is that my browser can go anywhere with the click of the mouse. It’s much harder for me to pick up my feet and visit Walmart when I prefer the “Tar-jay” experience instead. The recent success that Walmart has seen with higher income-level shoppers only highlights how availability and convenience of online shopping is blurring the lines of where income levels shop. That’s the real story here. So no, I likely won’t be browsing the aisles of Walmart any time soon because there are a few other stores much closer to where I live. But you will see me shop there online if the price and convenience is right.
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Walmart's Strategic Mastery: Blending Digital with Physical to Drive Its eCommerce Boom Walmart's vast store network places them within 10 miles of approximately 90% of the US population. This isn't just about physical reach; it's about leveraging that reach for digital success. While other retailers have been focusing on flashy marketing campaigns and elaborate store designs, Walmart has been leveraging its operational efficiency to outmaneuver the competition. Did you know that 50% of the items they sell online are now fulfilled directly from a store? Customers are making their preferences clear: convenience and access is as important as competitive pricing. Walmart is capitalizing on both, with YoY e-commerce growth surpassing 50%. Their strategy? A blend of: * Integrated Apps: Seamlessly tied into real-time store inventory * Flexible Delivery: Offering a range of options to suit every customer * Enhanced Store Pick-Up: Over 3,000 locations upgraded to handle online orders * Innovative Tech: A mix of in-house solutions and market acquisitions While they boast an extensive product range and competitive pricing, it's their customer-centric approach and daily execution is starting to set them apart. A sleek website or a high-tech app isn't the endgame. It's the marriage of digital prowess with on-ground logistical excellence. If you can't back up your online promises with robust logistics and impeccable in-store experiences, you risk both your reputation and revenue. In the world of retail (and eCommerce in general), is not just about being seen; it's about delivering on that vision. #walmart #logistics #operations https://lnkd.in/evf6pydZ
Walmart keeps gaining high-end customers. And the CFO explains why
fortune.com
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“Walmart, known for its giant stores and low prices, has put up strong results over the past year even as U.S. consumers have pulled back on discretionary purchases like new outfits, flat-screen TVs and more. It is the largest grocer in the country and makes more than half of its annual revenue from groceries — a category that shoppers need, even when inflation or a recession stretch their budgets.” “For Walmart, sticky inflation — particularly in categories like food and household essentials — has also become an opportunity to get new or less frequent shoppers to come to its website and stores. In calls with CNBC over the past few quarters, Chief Financial Officer John David Rainey said the company has attracted more grocery shoppers from households that make more than $100,000.” “Walmart has also defied another dynamic in the retail industry. As Covid pandemic gains fade away and most companies post online sales declines, it has put up double-digit e-commerce gains for its U.S. business in the past two quarters. In an interview with CNBC in August, Rainey said Walmart may attract customers with its prices, but wants to beat competitors and retain those shoppers by making it quick and easy to get purchases. Curbside pickup and delivery have driven the company’s e-commerce growth, he said.” - Melissa Repko
Walmart shares hit all-time high, as retailer's value focus attracts shoppers and investors
cnbc.com
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Are grocery stores trying to respond to American consumer behavior or change it? When I wrote about the rise of on-demand grocery shopping in 2017, the big trend among grocery retail was curbside or in-store pick-up. Yes, curbside pick-up predates the pandemic -- and this is important to bear in mind when you consider why Walmart launched Pick-up and Fuel concept stores in 2016 and Amazon began to roll out Amazon Fresh Pickup. Even Amazon with its vast eCommerce business realized something about consumers: as Mark Rogowksy noted in Forbes in 2017, grocery delivery has been fraught with its share of failure, and he should know – he used to work at delivery flameout Webvan. One of the inherent truths about grocery shopping, as he noted, is that it’s a lot easier for people to order and pick up groceries on the go rather than wait around in their homes for the delivery of food, especially something perishable that they’ll need to store properly upon delivery. By contrast, if you order a non-perishable for home delivery, you don’t need to wait around for it. As noted in the CNBC article below, grocery home delivery services capitalize on the location of brick-and-mortar stores by turning them into fulfillment services. But per PYMNTS, 87% of grocery transactions, per se, still occur in physical stores. How might retailers shift that behavior from in-store to online? They are betting that the answer is to speed up delivery faster than what they offered before the pandemic hit. Target says it can deliver some online orders in as little as an hour. Walmart will start making on-demand deliveries as early as 6 a.m. local time. (It previously started them at 8 a.m.) It’s also worth nothing Kroger says that the company saw a 24% increase in delivery sales year over year in the most recent quarter. I think the big retailers are playing the long game. They seek to change behavior over the long term while accepting the near-term costs associated with expanding delivery. This will squeeze out smaller competitors and reduce the need for in-store associates over a long period of time. Will they succeed, though? #Retail #LITrendingTopics #TheInsider #Amazon #Walmart #Target
Grocers are trying to get orders to your door faster than ever — here's why
cnbc.com
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Walmart's Q1 Performance and Focus on Essentials and E-commerce - Walmart Inc. reported another quarter of robust sales growth, driven by a combination of higher transaction volumes and a significant boost in e-commerce. For the quarter ending April 26, U.S. same-store sales rose 3.8%, surpassing Wall Street expectations. This growth was supported by a 3.8% increase in transactions, despite flat average ticket prices as inflation pressures eased. E-commerce sales were particularly strong, jumping 22%, with upper-income households contributing significantly to these gains. - The company has updated its full-year guidance, now expecting adjusted earnings per share at the high end or slightly above its initial range of $2.23 to $2.37, and revenue growth of 3% to 4%. This aligns closely with analysts' expectations of $2.37 per share and nearly 4% revenue growth. - Walmart’s CEO Doug McMillon emphasized that the company’s performance is not merely inflation-driven but results from increased units sold, transaction growth, and market share expansion. The company is also focusing on offering more discounts, which are resonating with customers, particularly higher-income households seeking value. - Following the earnings report, Walmart shares rose by 6% in premarket trading. The stock has gained 14% year-to-date, outperforming the S&P 500’s 11% rise. CFO John David Rainey noted that higher-income households were the largest contributors to share gains across various categories, highlighting a trend of consumers trading into Walmart for value, quality, and convenience. - Walmart's grocery business remains a key growth driver, while general merchandise has lagged. The company has also been successful in driving costs out of its e-commerce operations, with delivery orders surpassing pickup orders. Walmart delivered approximately 4.4 billion units for same-day or next-day delivery over the past year, with nearly half of those orders fulfilled in under four hours. - In response to changing consumer behavior and economic conditions, Walmart has been rolling out more discounts, new products, and store remodels. The company plans to remodel over 900 stores this year, aiming to enhance the shopping experience and attract more customers. Lower-income consumers continue to prioritize purchases of groceries and essentials over discretionary items, a trend that has benefited Walmart as competitors like Home Depot and Target struggle. - Cost management has also been a focus, with a 4.2% decline in inventory levels in the U.S. as supply chains normalize post-pandemic. Additionally, Walmart is consolidating its workforce, shuttering smaller offices, and relocating employees to larger hubs, including its new corporate headquarters in Bentonville, Arkansas. #walmart #Q1earnings #ecommerce #growth #retailindustry #consumertrends #investments #marketanalysis
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Thank you, Kiplinger for including goTRG in your holiday shopping feature. Our Returns Report: 2023 Holiday Survey arrived just in time for the festive season to unwrap important findings that impact both retailers and consumers. With the holiday shopping rush upon us, our survey of 500 senior leaders from 21 major U.S. retailers, including Walmart and Amazon, indicates that 59% have implemented “keep-it” policies for items that are not cost-effective to return, and 68% of retailers reporting significantly higher inventory levels compared to previous years. Read the full article here: https://lnkd.in/epJ-78zn #keepitpolicies #returnsmanagement #returnsprocess #returnspolicies #returnshipping #amazon #walmart #gotrg #kiplinger #personalfinance #holidayshopping #returns #reverselogistics #returnmerchandiseauthorization #rma
Holiday Shopping? Here’s Why Some Stores May Let You Keep Your Returns
kiplinger.com
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“Walmart has weathered high inflation better than many other retailers. It has used its value reputation to draw in families across income levels and has leaned into new ways to make money, such as selling ads, expanding its third-party marketplace and offering a subscription-based program called Walmart+.” “Comparable sales, an industry metric also known as same-store sales, rose 4% for Walmart U.S. At Sam’s Club, comparable sales increased 1.9%, including fuel.” “Global e-commerce sales jumped 23% year over year, topping $100 billion in total. In the U.S., e-commerce rose 17% as shoppers used curbside pickup and got orders delivered to their homes.” “In the U.S., customer transactions increased 4.3% compared with the year-ago period. However, average ticket, or the amount that a customer spent, declined slightly.” “In a CNBC interview, Chief Financial Officer John David Rainey said customers have still shown discretion with purchases. They are putting fewer items in their baskets but shopping more frequently, he said. Electronics, TVs, computers and some other expensive items have been a tougher sell, Rainey added.” - Melissa Repko
Walmart beats Wall Street’s holiday expectations as e-commerce sales soar
cnbc.com
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Walmart is a standout retailer in this latest report from the Brick Meets Click/Mercatus, capturing nearly 36% of all U.S. online grocery sales in Q2 of this year. This is a record high for the mass merchant and is the third consecutive quarter of increases. We see that online grocery pickup continues to widen the gap over grocery delivery and ship-to-home fulfillment methods, finishing at a 48% share for Q2 2023, up two points versus YA. This report also stated that total online grocery sales were down 1.1% last quarter, with fewer overall orders per household. All these data points seem to point to cash-strapped shoppers looking for more value in inflationary times and finding savings in the mass channel. With grocery pickup being the lower-cost fulfillment option for both consumers and retailers, but still a convenience benefit for households, I would expect this method to keep growing in both the mass and grocery channels. #onlinegrocery #pickup
Walmart online grocery sales reach record high
supermarketnews.com
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“Walmart on Thursday topped quarterly earnings and revenue expectations, as the discounter made significant e-commerce gains, drove profits with newer businesses like advertising and won over more high-income shoppers.” “The big-box retailer said it now expects to hit the high end or slightly top its previous full-year guidance. Walmart had expected net sales growth of 3% to 4% and adjusted earnings per share of between $2.23 and $2.37.” “In an interview with CNBC, Chief Financial Officer John David Rainey said one of the factors boosting Walmart’s grocery business is the widening gap between the price of cooking at home and buying food at fast-food chains or restaurants.” “Plus, he added, shoppers appreciate the convenience that Walmart offers. For the first time, its delivery business surpassed its store pickup in terms of volume, Rainey said.” “Walmart’s net income jumped to $5.10 billion, or 63 cents per share, in the three-month period that ended April 30, compared with $1.67 billion, or 21 cents per share, in the year-ago period.” “Revenue climbed 6% from $152.30 billion in the year-ago quarter. That increase includes a benefit of roughly 1% from an additional selling day in the period.” “Same-store sales for Walmart U.S. climbed by 3.8%, excluding fuel. The industry metric includes sales from stores and clubs open for at least a year. At Sam’s Club, same-store sales rose 4.4% year over year, excluding fuel.” “E-commerce sales shot up by 22% year over year for Walmart U.S., fueled by store pickup and delivery of online orders, as well as the company’s growing third-party marketplace.” “Walmart’s customers in the U.S. made more visits to its stores and website in the quarter, but spent roughly the same as in the year-ago period. Transactions rose 3.8% and average ticket was flat compared with the year-ago quarter.” “Even so, the discounter has noticed the impact of inflation, as its shoppers have been selective with purchases. Rainey said customers’ “wallets are still stretched.” He said shoppers have bought less general merchandise, such as home goods and electronics, as they prioritize spending on food and health-related items, a trend that the company has seen for the past several quarters.” - Melissa Repko
Walmart earnings beat as discounter wins over more high-income shoppers, e-commerce sales jump
cnbc.com
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Walmart exceeded expectations for quarterly earnings and revenue. The company experienced significant e-commerce growth, with a 22% increase in its U.S. business. Walmart's grocery business benefited from the widening gap between the price of cooking at home and eating out. The convenience offered by Walmart attracted more high-income shoppers, with its delivery business surpassing store pickup in terms of volume. Walmart reported earnings per share of 60 cents (adjusted) compared to the expected 52 cents, and revenue of $161.51 billion compared to the expected $159.50 billion. Net income for Walmart increased to $5.10 billion, or 63 cents per share, compared to $1.67 billion, or 21 cents per share, in the previous year. Walmart's same-store sales for Walmart U.S. increased by 3.8%, excluding fuel, and same-store sales for Sam's Club rose 4.4% year over year, excluding fuel. E-commerce sales for Walmart U.S. grew by 22% year over year, driven by store pickup, delivery of online orders, and the company's third-party marketplace. Walmart's profits were boosted by newer businesses like advertising and its subscription-based membership program, Walmart+. The company's global advertising business grew by 24% during the quarter, with 26% growth in the U.S. segment. #walmart #earnings #retail #ecommerce
Walmart earnings beat as discounter wins over more high-income shoppers, e-commerce sales jump
cnbc.com
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The Free Ride Ends The Rundown: A new report shows that free online returns, which shoppers have grown accustomed to, are disappearing as retailers begin widely charging return shipping fees. Key points: Major retailers like J.Crew, Abercrombie, H&M, and Macy’s now charge for returns. 81% of retailers are charging fees for at least some returns. Returns are becoming extremely costly for retailers. $816 billion in merchandise was returned in 2022. Customers return 16.5% of items purchased on average. The relevance: This signals a major shift in online shopping behavior and expectations. As free returns go away, shoppers will need to be more careful about purchases and brace for fees if they do return items. It shows that the high costs of returns are no longer sustainable for retailers. At this moment as free returns disappear, consumers should rethink shopping habits and adjust expectations. https://lnkd.in/gSr7-Aqf
No More Free Returns? What This Means for Unwanted Gifts
finance.yahoo.com
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