One of America’s largest retailers, Walmart, just made a big announcement. The CEO of Walmart shared alarming news that might have a severe impact on Amazon. Many things changed from years ago and this includes our consumer habits and behaviour. He stated that the way consumers do shopping has changed over the decades. From going to stores to purchase what you need, to having a more digital presence and making orders online – without stepping into a physical store.
The retail digital shopping presence
In previous years, consumers had to go in-store to purchase a pair of jeans, but now as we are living in a more technology driven era – ordering and purchasing your products became much easier. Although some consumers still choose to rather do in-store shopping, a more convenient option is always available. There are many benefits of online shopping like; consumers avoid standing in long lines and skip traffic.
Additionally, this convenient option became a possibility due to big retailers like Amazon (AMZN) and Walmart (WMT). These retailers took the responsibility to make online shopping easier, by taking on the logistical and financial burdens. It all started with Amazon, as the first retailer to provide free and fast shipping and returns, as part of the yearly consumer membership. Up until today, hundreds of consumers as part of the Prime membership, have access to millions of products that are delivered to their doorsteps. All of this, within a period of two days, many consumers still receive their products the same day.
Walmart’s online shopping
Although Amazon was the main retailer who started with the online shopping initiative and went at it, full stream, Walmart is not far behind. Walmart+ was launched in 2020, as many of us found ourselves in-house during COVID-19 – and it became one of the largest retailers. It made it possible for consumers to purchase products online during these difficult times, this fan favourite retailer did not share how many memberships deals it has, but it became a big competitor for Amazon’s massive Prime service.
In addition, there are many benefits that Walmart+ consumers can enjoy. These benefits include:
- Access to exclusive savings
- Seamless returns
- Free shipping
- Fast and Easy shipping
Retail Competition: Amazon Versus Walmart
The CEO of Walmart alluded to the fact that the retailer is now taking on something that Amazon had its eyes set on. This is the same day shipping initiative. It was indicated that 93% of United States household, now have access to the same day shipping opportunity, this all due to this powerhouse retailer. Also, this powerhouse retailer has spoken out about the company’s extremely fast delivery options. The deliveries can now only take up to three hours to be delivered, or even less than that. Deliveries was up by 180% during that period – thus showing a strong demand for near-instant services.
Furthermore, the CEO stated that Walmart is investing to serving consumers how they wish to be served. He implied that, that is what is adding to the retailer’s growth. Walmart’s prices are affordably low, and the company is becoming more convenient for its consumers – also an opportunity to attract new consumers. Walmart had a 16% year over year, membership income increase, with net sales up 4%.
In addition, the retailer, Amazon stated in April of last year that 60% of the company’s orders are placed for same day or next-day delivery. This may be an indication that consumers value speed and convenience over almost everything else. Therefore, this puts Walmart at a competitive advantage since the retailer is focused on making shopping more convenient for its consumers. With this, this big retailer also values speed and know that its consumers values time.