August 28, 2024
Courtesy of Walmart
What Impact Will Walmart’s ‘Let’s Grow!’ Initiatives Make?
At the Let’s Grow! 2024 Walmart Marketplace Seller Summit this week, Walmart unveiled several major developments that position the retailer to continue to assert its dominance in the retail industry.
“We’re executing strategic priorities at Walmart that are helping us to become the customers’ first choice — every day, every season, for every item. Walmart Marketplace is a key component of that mission. We know the importance of personalized, seamless omnichannel experiences, and Walmart continues to advance its digital and fulfillment capabilities, including the new categories and features we announced today, that enhance the overall customer and seller experience on Walmart.com.”
Tom Ward, executive vice president and chief e-commerce officer, Walmart U.S., via Walmart
First up, Walmart announced a new Premium Beauty section featuring over 20 new brands. This new segment will feature custom storefronts and curated editorial content to offer a refined and seamless brand experience. Expanding Premium Beauty to the Marketplace represents “the latest evolution of Walmart as a top beauty destination,” according to the retailer.
Additionally, the company introduced “Resold at Walmart,” a platform dedicated to pre-owned merchandise. This new section will feature 5 million items from over 1,700 sellers, providing customers with an expanding range of products — from luxury fashion and electronics to collectibles and sporting goods — all at “the value they expect from Walmart.”
A new Collector Shop platform will allow sellers to put collectibles on the market, such as toys, trading cards, comics, and more. Sellers will also be able to offer special preorders for items, including Walmart exclusives, and share the condition grades of pre-owned collectibles.
Walmart announced at the event that it is also improving its omnichannel integration, such as with new services for tire sellers. Customers can now order tires from Marketplace sellers online and have them shipped to one of 2,300 Walmart Supercenters for installation. Additionally, more than 4,600 Walmart stores nationwide will now accept Marketplace returns.
Furthermore, Walmart is enhancing its fulfillment solutions with Multichannel Logistics, allowing sellers to fulfill orders from any e-commerce site through Walmart’s supply chain, and Cross Border Fulfillment to streamline imported goods from Asia.
In anticipation of the holiday season, Walmart is offering several new benefits for sellers, including a revamped Global Seller Center and app, waived peak season storage fees for inventory sent to Walmart Fulfillment Services by Sept. 30, expanded access to Walmart Marketplace Capital with up to $5 million in cash advances, and a new Deals Dashboard for managing holiday promotions.
According to the big-box retailer, Walmart Marketplace has seen over 30% sales growth in each of the past four quarters. Global e-commerce sales exceeded $100 billion last year, with its U.S. e-commerce business achieving double-digit growth for six consecutive quarters. Additionally, the number of independent sellers on Walmart.com increased by 20% in the last fiscal year.
“Sellers are looking for a smart path for growth,” said Manish Joneja, SVP of Walmart Marketplace and Walmart Fulfillment Services. “We’re bringing all the pieces together to be much more than a marketplace and investing in new ways for sellers to serve customers as we grow together.”
Nasdaq reports that Walmart recently increased its full-year sales forecast, driven by consumers purchasing essential items and seeking bargains, even as they cut back on spending in other areas. Additionally, Walmart’s general merchandise sales, which make up 26% of total sales, saw growth after 11 straight quarters of decline.
Per financial writer Tony Daltorio, “I believe Walmart is gaining market share not just in grocery, but also in general merchandise, due to its rapidly growing online marketplace (including a growing number of third-party sellers).”
BrainTrust
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Richard Hernandez
Merchant Director
Scott Benedict
Founder & CEO, Benedict Enterprises LLC
Recent Discussions
Discussion Questions
How might Walmart’s new initiatives, such as the Collector Shop platform, influence the evolution of niche markets and specialty retail segments?
How do Walmart’s new Premium Beauty section and “Resold at Walmart” platform reflect shifts in consumer behavior and market expectations?
How will Walmart’s advancements in Multichannel Logistics and Cross Border Fulfillment influence competitive dynamics and supply chain management in the retail industry?
Poll
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This year’s Let’s Grow event has underlines how focused Walmart is on growing its marketplace.
Walmart has worked hard to bring more sellers on board and is now both deepening the assortment and expanding the range of services it offers to businesses, including in select categories like resale and premium beauty. Behind the scenes, Walmart is also opening up its marketplace services, such as logistics, to businesses that don’t sell via Walmart.
If a lot of this looks familiar it is because, to some extent, what Walmart mirroring Amazon. One of the customer challenges, however, is getting online shoppers to switch from Amazon to Walmart.
Oh, to be a fly on the wall for the Walmart ideation sessions that prioritize new projects. Walmart has wide leeway to create whatever it wants, and the possibilities are seemingly endless.
Let’s grow margins! Give me a W…! Another go-big-or-go-home platform monetization and diversification play from Walmart. There is little to argue with here and lots to laud, awareness being the only rub. Walmart must constantly tweak its website experience, in-store signals, and marketing initiatives to ensure that shoppers know and care about the dizzying array of options it keeps cooking up. Just stumbling upon the new won’t cut it.
I see customers really making Walmart and Walmart.com a destination. They are really coming after Amazon in a big way. Like Carol said, it is definitely a “Go big or go home” strategy moving forward.
In spite of Amazon’s 1994 launch, Walmart didn’t seem to have a fully planned effort to compete with Amazon until 25 years later. However, Walmart is the only living thing that can compete with Amazon.
Walmart does have some advantages with it’s extensive network of physical stores provides a significant advantage in terms of logistics and customer convenience. Additionally, Walmart’s strong brand loyalty and vast product range help it attract a diverse customer base. Their ability to leverage both online and offline channels creates a seamless shopping experience that rivals Amazon’s dominance.
Walmart’s new initiatives are more like Amazon’s than Walmart’s. That’s not necessarily a bad thing. With methods that best serve consumer shopping in 2024, Amazon is very dominant.
Walmart has rolled out initiatives such as Walmart+, a membership program that offers free delivery and fuel discounts, similar to Amazon Prime. They have also invested heavily in their e-commerce platform, enhancing website functionality and user experience. Furthermore, Walmart’s partnership with companies like Shopify allows third-party sellers to list their products on Walmart’s marketplace, expanding their online product offerings.
Collector Shop will be formidable at serving niche markets, although it will take time for consumers to think of Walmart this way. Consumers will take even longer to think about Walmart’s premium beauty platform, or indeed any “premium” offering.
To attract premium beauty consumers, Walmart can focus on curating a selection of high-end, exclusive brands that are often found in specialty beauty stores. By creating a luxurious and personalized shopping experience both online and in-store, they can appeal to discerning “Walmart” customers. I think they do exist. Db
There are so many initiatives, platforms and partner programs underway at Walmart+ that I’m starting to wonder if one “+” is sufficient.
The Great Wal seems intent on creating an ecosystem of interlocking offerings for every vendor and every shopper. Right now, it is the only entity possessing the will, the skill, and the resources to carry out such a strategy.
It’s an impressive attempt to beat Amazon.com at its own game, while simultaneously changing the game. For me the key question is this: “Can it handle the incredible complexity?”
Walmart is one of the few, if only company, that can compete with Amazon and the number of initiatives it has rolled out in the last year is dizzying. Fortunately, they have the financial resources and supply chain expertise to make this happen. But will these additional strategies put undue stress on Walmart’s historical execution that made them what they are today?
I had the opportunity to watch the Walmart “Let’s Grow” event virtually this week, and was totally blown away. The breadth of opportunity for entrepreneurs to grow their business with Walmart is beyond measure. They are providing marketing, supply chain, and back office tools that are truly awesome, and something Amazon cannot replicate…a connection to a local store base that is within 10 miles of 90% of the US population. The growth into areas like Collectibles is a clear shot across the bow of eBay, and the aggressive Prestige Beauty initiative is a clear response to Sephora and Ulta Beauty’s partnerships with other retailers. The cross-border initiative gives sellers the opportunity to leverage Walmart’s extensive supply chain infrastructure in ways they have not been able to before. Just…wow.
I was impressed before I read your comment. Your comment highlights their strategy—a very winning strategy. “… something Amazon cannot replicate.”
Walmart is seeing the retail future, and it is doing it the Walmart way. It has identified its operational strengths and is doubling down on them. It has also identified that Amazon is not a retailer but a mall and has expanded on that concept. To quote BrainTruster, Scott Benedict, “They are providing marketing, supply chain, and back office tools that are truly awesome, and something Amazon cannot replicate…”
If I were giving my students a case study to develop a strategy for getting them to 2030 and beyond, this would earn them an A+.
Walmart is transforming its revenue streams while protecting its core store investment, which is second to none in the US. The Walmart Marketplace initiatives announced at Let’s Grow are impressive and elevate the retail competitive landscape. The initiatives call out growth categories that will impact eBay, The RealReal, Ulta, and Kohl’s reliance on Sephora.
Walmart is not only looking at Amazon as a marketplace and overall retail competitor. The company is keenly aware of the impact of Chinese marketplaces like AliExpress, Shein, and Temu on consumers’ online purchase behavior. According to Marketplace Pulse, new Chinese sellers on Walmart Marketplace represented only 1.8 percent of all new sellers in April 2023 and hit 73.8 percent one year later. The initiatives and investments we’re witnessing in Walmart+ and Walmart Marketplace reflect the dynamic and highly competitive dimensions of global retailing executed locally.
The premium beauty section will appeal to the company’s new higher-income customers, as will “Let’s Grow” in general. I’m also surprised that our poll shows 44% NEVER shop at Walmart.
“Let’s Grow” only works if Walmart continues to do what it has always done: keep up with what customers want and expect. If they were only doing what Sam Walton started in the beginning, they would have been out of business years ago. So, if you want to grow, keep up with your customers’ ever-changing needs, demands, and expectations. This is good advice for any type of business.
Walmart can do what few retailers can: take incoming trends and business models and make them accessible/mainstream for everyone. “Resold at WMT” platform is a great example that many have been trying with mixed results.
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This year’s Let’s Grow event has underlines how focused Walmart is on growing its marketplace.
Walmart has worked hard to bring more sellers on board and is now both deepening the assortment and expanding the range of services it offers to businesses, including in select categories like resale and premium beauty. Behind the scenes, Walmart is also opening up its marketplace services, such as logistics, to businesses that don’t sell via Walmart.
If a lot of this looks familiar it is because, to some extent, what Walmart mirroring Amazon. One of the customer challenges, however, is getting online shoppers to switch from Amazon to Walmart.
Oh, to be a fly on the wall for the Walmart ideation sessions that prioritize new projects. Walmart has wide leeway to create whatever it wants, and the possibilities are seemingly endless.
Let’s grow margins! Give me a W…! Another go-big-or-go-home platform monetization and diversification play from Walmart. There is little to argue with here and lots to laud, awareness being the only rub. Walmart must constantly tweak its website experience, in-store signals, and marketing initiatives to ensure that shoppers know and care about the dizzying array of options it keeps cooking up. Just stumbling upon the new won’t cut it.
I see customers really making Walmart and Walmart.com a destination. They are really coming after Amazon in a big way. Like Carol said, it is definitely a “Go big or go home” strategy moving forward.
In spite of Amazon’s 1994 launch, Walmart didn’t seem to have a fully planned effort to compete with Amazon until 25 years later. However, Walmart is the only living thing that can compete with Amazon.
Walmart does have some advantages with it’s extensive network of physical stores provides a significant advantage in terms of logistics and customer convenience. Additionally, Walmart’s strong brand loyalty and vast product range help it attract a diverse customer base. Their ability to leverage both online and offline channels creates a seamless shopping experience that rivals Amazon’s dominance.
Walmart’s new initiatives are more like Amazon’s than Walmart’s. That’s not necessarily a bad thing. With methods that best serve consumer shopping in 2024, Amazon is very dominant.
Walmart has rolled out initiatives such as Walmart+, a membership program that offers free delivery and fuel discounts, similar to Amazon Prime. They have also invested heavily in their e-commerce platform, enhancing website functionality and user experience. Furthermore, Walmart’s partnership with companies like Shopify allows third-party sellers to list their products on Walmart’s marketplace, expanding their online product offerings.
Collector Shop will be formidable at serving niche markets, although it will take time for consumers to think of Walmart this way. Consumers will take even longer to think about Walmart’s premium beauty platform, or indeed any “premium” offering.
To attract premium beauty consumers, Walmart can focus on curating a selection of high-end, exclusive brands that are often found in specialty beauty stores. By creating a luxurious and personalized shopping experience both online and in-store, they can appeal to discerning “Walmart” customers. I think they do exist. Db
There are so many initiatives, platforms and partner programs underway at Walmart+ that I’m starting to wonder if one “+” is sufficient.
The Great Wal seems intent on creating an ecosystem of interlocking offerings for every vendor and every shopper. Right now, it is the only entity possessing the will, the skill, and the resources to carry out such a strategy.
It’s an impressive attempt to beat Amazon.com at its own game, while simultaneously changing the game. For me the key question is this: “Can it handle the incredible complexity?”
Walmart is one of the few, if only company, that can compete with Amazon and the number of initiatives it has rolled out in the last year is dizzying. Fortunately, they have the financial resources and supply chain expertise to make this happen. But will these additional strategies put undue stress on Walmart’s historical execution that made them what they are today?
I had the opportunity to watch the Walmart “Let’s Grow” event virtually this week, and was totally blown away. The breadth of opportunity for entrepreneurs to grow their business with Walmart is beyond measure. They are providing marketing, supply chain, and back office tools that are truly awesome, and something Amazon cannot replicate…a connection to a local store base that is within 10 miles of 90% of the US population. The growth into areas like Collectibles is a clear shot across the bow of eBay, and the aggressive Prestige Beauty initiative is a clear response to Sephora and Ulta Beauty’s partnerships with other retailers. The cross-border initiative gives sellers the opportunity to leverage Walmart’s extensive supply chain infrastructure in ways they have not been able to before. Just…wow.
I was impressed before I read your comment. Your comment highlights their strategy—a very winning strategy. “… something Amazon cannot replicate.”
Walmart is seeing the retail future, and it is doing it the Walmart way. It has identified its operational strengths and is doubling down on them. It has also identified that Amazon is not a retailer but a mall and has expanded on that concept. To quote BrainTruster, Scott Benedict, “They are providing marketing, supply chain, and back office tools that are truly awesome, and something Amazon cannot replicate…”
If I were giving my students a case study to develop a strategy for getting them to 2030 and beyond, this would earn them an A+.
Walmart is transforming its revenue streams while protecting its core store investment, which is second to none in the US. The Walmart Marketplace initiatives announced at Let’s Grow are impressive and elevate the retail competitive landscape. The initiatives call out growth categories that will impact eBay, The RealReal, Ulta, and Kohl’s reliance on Sephora.
Walmart is not only looking at Amazon as a marketplace and overall retail competitor. The company is keenly aware of the impact of Chinese marketplaces like AliExpress, Shein, and Temu on consumers’ online purchase behavior. According to Marketplace Pulse, new Chinese sellers on Walmart Marketplace represented only 1.8 percent of all new sellers in April 2023 and hit 73.8 percent one year later. The initiatives and investments we’re witnessing in Walmart+ and Walmart Marketplace reflect the dynamic and highly competitive dimensions of global retailing executed locally.
The premium beauty section will appeal to the company’s new higher-income customers, as will “Let’s Grow” in general. I’m also surprised that our poll shows 44% NEVER shop at Walmart.
“Let’s Grow” only works if Walmart continues to do what it has always done: keep up with what customers want and expect. If they were only doing what Sam Walton started in the beginning, they would have been out of business years ago. So, if you want to grow, keep up with your customers’ ever-changing needs, demands, and expectations. This is good advice for any type of business.
Walmart can do what few retailers can: take incoming trends and business models and make them accessible/mainstream for everyone. “Resold at WMT” platform is a great example that many have been trying with mixed results.