America’s top retailer, Walmart has just made a big change to its payment options and it could have a great impact on customers.
Brick and mortar retail — a dying industry?
In days long gone, the only way to make a purchase was to leave the comfort of your home and make your way to a physical store. One could even argue that this extra effort made consumers more aware and intentional with their purchases rather than giving in to the consumerism bug.
However, in a post COVID-19 world, much has changed in the ways businesses operate. As a result of lockdown restrictions, many companies had to introduce an online shopping platform in order to stay afloat during uncertain times. Whilst pandemic restrictions have since ended, the preference for online shopping has persisted and brick and mortar sales have been consistently down.
Supermarkets like Target or Walmart are somewhat lucky in this aspect as the in-store shopping model still yields a good amount of success and the reason behind this is simple — people need groceries weekly, if not daily and no one wants to wait for 3-5 business days for a loaf of bread to get delivered. That being said, some grocers are now introducing same day delivery services for fresh produce items in a bid to boost sales.
Changes at Walmart
Much like any other business, Walmart has also undergone various changes and evolutions over the years in order to keep up with changing markets. In 2020, for example, the retailer launched its e-commerce platform, Walmart+ in order to compete with primarily online retailers like Amazon and the program has seen much growth and success over the years.
The retailer is also dedicated to improving its in-store experience for shoppers and in this regard, $9 billion has been invested towards store renovations. The company also has a five year plan that includes the opening of new stores to better the experience and convenience for shoppers.
“In the next five years, Walmart is planning to build or convert more than 150 stores, while simultaneously continuing our program to remodel existing stores. These efforts represent millions of dollars in capital investment of labor, supplies and tax revenue, which benefit their respective communities. And they’ll help us reach and serve even more customers,” Walmart CEO John Furner shared when asked about the changes.
Other changes the retailer hopes to incorporate includes:
- Increased sustainability
- More selection
- In-store tech to help shoppers navigate
- New aisle displays
- Fresh paint and lighting
- More shopping carts
New payment option at checkout
Just last week on March 17, the company shared an announcement explaining that it would be changing its Buy Now, Pay Later (BNPL) partner at checkout from Affirm to Klarna.
Affirm had been the supermarket giant’s Buy Now, Pay Later partner since 2019. BNPL services allow customers to pay off their bill from the retailer in weekly or monthly installments, often interest-free. This service is especially useful to shoppers who are making bigger purchases for items like appliances or furniture.
An approximate total of 2% of adjusted income recorded by Affirm was represented by Walmart.
After this announcement was made, a spokesperson for Affirm shared, “We will continue our long-term strategy of competing on our products and entering into sustainable partnerships.”
Walmart will now be partnering with Swedish brand Klarna to offer BNPL services to its customers.
The retailer will begin rolling out Klarna’s services at its stores over the next few weeks. The company has projected that the system will be in full operation at every Walmart checkout counter by the festive period later this year. Through Klarna, Walmart shoppers will be able to access assistance from 3 to 36 months.
When asked about the new partnership, Klarna CEO Sebastian Siemiatkowski said, “This is a game changer. We look forward to helping redefine checkout at the world’s largest retailer — both online and in stores.”