May 23, 2024
Photo by Marques Thomas on Unsplash
Will Walmart Dominate Virtual Retail?
It’s not enough that Walmart has decided to open 150 new stores in the U.S. Beyond the real world, Walmart has launched a virtual shopping platform, Walmart Realm, that represents a significant evolution in the world of e-commerce. This innovative marketplace introduces a unique blend of influencer-led virtual stores, creating an immersive shopping experience for consumers.
Walmart Realm is designed to gamify the shopping journey, leveraging advanced technology from Emperia to transport customers into fantastical worlds. These virtual environments not only allow users to interact with products but also offer nostalgic online games, making the shopping process both engaging and entertaining.
On LinkedIn, William White, Walmart’s chief marketing officer, shared how Walmart Realm “pushes boundaries as a first-of-its-kind digital shopping experience with influencer-led virtual shops in immersive worlds. It’s fantastical, it’s inspirational and simply put: it’s a lot of fun. At Walmart, we’re embracing innovation with e-commerce experiences designed with the virtual world at the heart. This latest innovation is reshaping the retail landscape and we’re thrilled to bring it to our customers.”
At the core of Walmart Realm are several distinctive virtual shops, each curated by influencers and inspired by popular social trends. These shops include:
- So Jelly: An underwater playground filled with vibrant colors and whimsical surprises, providing a playful shopping experience.
- Y’allternative: A Western-themed destination with a twist of dark, gothic aesthetics, offering a unique and edgy ambiance.
- Go Chromatic: A futuristic environment featuring shimmering metallics and chic designs, perfect for those seeking a modern shopping vibe.
In addition to these themed shops, Walmart Realm incorporates social content from the retailer’s creators, enhancing product discoverability and engagement. The platform also includes three mini-games, each inspired by the featured products.
Justin Breton, Walmart’s director of brand experiences & strategic partnerships, highlighted the platform’s innovative approach. He emphasized that Walmart Realm is not merely a digital replica of a physical store but a creative, shoppable environment that pushes the boundaries of traditional retail. “We’re continuing to shorten the distance between inspiration & commerce, highlighting the best fashion, beauty, & home products as selected by our creator partners, in each virtual shop,” Breton explained.
With Walmart Realm, the company is betting on immersive commerce as the future of online shopping. This initiative marks just the beginning of Walmart’s efforts to define and lead in this innovative space and its commitment to blending technology, creativity, and social influence.
Earlier this year, Walmart and Unity partnered to integrate Walmart’s commerce APIs into Unity’s game and app development platform. This allows developers to sell physical items within real-time 3D (RT3D) experiences across 20+ platforms, enhancing user engagement by enabling seamless in-game purchases.
The collaboration leverages Unity’s vast developer community and aims to connect virtual activities with physical shopping. Walmart has already tested this model in virtual experiences like “House Flip,” “Avakin Life,” and “ZEPETO,” where users can buy real-life items corresponding to virtual goods.
Walmart’s Unity Software-Development Kit (SDK) will let developers embed these commerce APIs, allowing players to purchase physical products without leaving the game. This integration helps maintain immersive experiences and offers developers new revenue streams through affiliate commissions.
Additionally, last year, Walmart launched “Walmart Discovered,” a virtual experience on Roblox aimed at fostering community engagement and creativity. Users ages 13 and older can explore various reimagined departments such as Sports, Pets, Racing, and Beauty, where they discover and vote for their favorite games, virtual items, and experiences. This initiative highlights over 300 community creators and allows developers to monetize their creations through Roblox’s currency, Robux.
“Walmart Discovered” includes personalized features like My Department, where users can save and revisit virtual items and experiences, and My Cart, a customizable in-experience sidekick inspired by Walmart’s iconic shopping carts. This immersive destination is accessible on multiple devices, including PC, Mac, iOS, Android, Amazon devices, Xbox, Oculus Rift, and HTC Vive. The platform aims to inspire customers and build stronger online communities through interactive and engaging virtual experiences.
Walmart also amplified its advertising platform, Walmart Connect, last month by upgrading the platform for advertisers to reach more consumers.
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Discussion Questions
How might the integration of virtual and physical retail experiences evolve in the coming years, and what challenges could arise in maintaining seamless customer engagement across these realms?
With influencer-led virtual shops like those in Walmart Realm, how might traditional retail marketing strategies adapt, particularly in terms of customer loyalty and brand perception?
Poll
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No, I do not think this will become mainstream. Walmart’s stores and its website are mainstream. By comparison this is, and will remain, a very niche part of the business, if only because it’s a rather odd way to browse products and not everyone wants or likes this gamified type approach. But that’s not the point. This is about experimenting with different ways of reaching customers and about showcasing the Walmart brand and products to younger shoppers. And on that front, I give Walmart full marks for trying something new! I find the curated shops very interesting as the virtual world allows influencers to really put their stamp on the whole experience.
Mainstream today, no, but despite what you hear in the news, virtual reality isn’t dead and going away. As it gets integrated with AI, it will continue to grow. Kudos to Walmart for trying to look to the future and test emerging technologies out. I’ll be checking this out!
All I can say is wow, a world that I never knew existed. It’ll be exciting to visit, but I don’t think this is the place. It will appeal the most to the customers but the ones that do are going to love it and become real boosters to the Walmart brand
As long as it doesn’t make me nauseous I’ll try it. I find most immersive 360 degree experiences do get me queasy
I’d like to move beyond the click-baitey sensationalized approach to WalMart’s virtual ventures to ask a more basic question: have we moved beyond the stereotype of the typical WM customer…and if so, is that correct? We’re all familiar with that view – they’re not tech savy, in this particular case (income and cultural issues we’ll leave for another day) – but even if true, it tends to overlook the role that volume plays; so with something like virtual selling, where there is a large fixed cost component, they may be able to pull it off just because (even with) a tiny percentage of the customer base they still reaches critical mass. Do I think VR will dominate WM’s selling approach? No. Do I think it will be viable? Maybe.
The pandemic was very good for Walmart, as Walmart was good to its workers and had the right stuff for shoppers. I have no interest in VR because it makes me nauseous, but Doug Mcmillon has made me a sometimes Walmart shopper.
Gen Zs and Alphas will demand the integration of virtual and physical retail experiences. In response, retail will evolve with more fun and seamless all-channel experiences that convert. More retailers will partner with charismatic influencers as media becomes more immersive, social and shoppable.
With Walmart Realm, Walmart keeps getting cooler by adapting to younger shoppers’ evolving expectations. Playful content embeds the retailer into consumers’ leisure habits, which can enhance engagement, trust and loyalty. The retail giant’s digital prowess has come so far in the last five years.
Why do you think they will demand that? I’m curious. AR, sure. But VR makes too many people nauseous. I’m not the only one.
The pandemic shifted these cohorts to be always-on for access to social belonging and entertainment. VR already lets them play together and shop in their video games (Michael Jordan jerseys, Air Jordans for their avatar). VR will evolve further to let players order products (frappuccinos, Kendra Scott necklaces) to their real-life doorsteps without having to leave the game.
Walmart Realm is an innovative experiment targeting younger shoppers with influencer-curated virtual stores. While Walmart Realm may remain a niche aspect of the retail business, the integration of virtual and physical retail experiences is likely to evolve, creating more immersive, gamified shopping environments and seamless in-game purchases. Challenges include ensuring consistent customer engagement, managing technological complexities, and maintaining data privacy and security. Retailers must balance innovation with reliable, user-friendly interfaces to keep customers engaged across both realms.
Traditional retail marketing strategies may adapt by incorporating more personalized, influencer-driven content to enhance customer loyalty and brand perception. By leveraging influencers’ credibility and reach, retailers can create engaging, authentic shopping experiences that resonate with younger audiences, fostering deeper connections and encouraging repeat business.
Walmart Realm intrigues me a lot but its much too early to predict that it will dominate. Realm will remain in the experimental stages with trial and error, plenty more experimentation, and stages of evolution.
Walmart’s traditional channels will remain the standard while Walmart embraces a new innovation and technology to further engage its digital customers. Db
Immersive commerce strategies, such as Walmart’s Realm platform, are another emerging engagement channel that attracts the next-gen consumer’s interest and a share of their wallet. While it is emerging, trending, and innovative, Walmart’s core business will clearly remain its stores, digital commerce platform, and online marketplace, backed by its impressive supply chain fulfillment capabilities.
However, when it comes to innovation, this represents another element that demonstrates that Walmart is not backing away from making the necessary efforts to build meaningful partnerships with Roblox, have a presence on TikTok, and seek new ways to engage and attract new customers. The Walmart Realm strategy enables creators to have the freedom of action in an entertaining and intriguing virtual world. It will be interesting to see how this evolves.
Walmart Realm is a unique experience that may interest shoppers to try the experience. However, there is a very limited selection of products and it is not an efficient shopping experience. It may appeal to some young shoppers for the visual experience, but I doubt it will drive much revenue for Walmart.
Way too early to be genuinely impactful, but smart PR move — and also it makes it clear that Walmart is not just playing it safe – they take reasonable risks and don’t mind sticking their necks out now and then.
Integrating complex virtual technologies, such as AR and VR, into existing retail systems will pose challenges, requiring careful planning and investment in infrastructure and staff training.
Secondly, influencer-led virtual shops will push traditional retail marketing to adapt by focusing more on personalisation and interactive content. This approach can strengthen customer loyalty by creating unique, memorable shopping experiences. It’s important for brands to maintain authenticity and quality in these virtual spaces to positively influence brand perception.
I would say, it is still important for brands to balance these new strategies with traditional methods to maintain a broad appeal (not just younger generations) and ensure that all customer segments feel valued.
This all sounds like the planting of a very early seed in the quest to attract and retain younger generations of customers. As a boomer, the last thing I am looking for is the gamification of my shopping experience. But a managed evolution of the retail model in recognition of what kind of shopping experience younger generations are going to be looking for…??? Absolutely. Bravo to Walmart for testing and probing their way into the future.
Any traditional retailer – especially mega-retailers like Walmart – must consider the blend of physical and digital experiences. They must keep up with technology and be quick to try new tech. Obviously, Walmart wants to dominate, as do other retailers. This is expected. Differentiating themselves with a new experience will be good for the customer.
Walmart Realm sounds like an exciting place to find some new products, especially for a specific type of consumer- they may be gamers, multiplayer engagements or similar, but it’s focused on a specific audience type, not necessarily your typical shopper.
The key factor is that the influencer-led environment will drive younger shoppers to visit and engage with WR, but the translation will be whether the curation is good enough to exceed what most such users are already engaged with from TikTok or YouTube. There is a place for WR, but I don’t see it becoming a shopping venue as you would a mall or brick and mortar store. It may capture digital product sales over time, or even drive increased store foot traffic, but the end result is a highly targeted group. The worlds, by design, will be about other things than selling, so consequently users will engage in other ways than buying.
I’ll start by saying I am surprised that only 31% of those polled answered yes to “will you try realms.” I’ve already tried it and found it to be innovative, fun, engaging, and easy to shop. I spent hours inside their space on Roblox when it launched and found it compelling. The idea that Walmart isn’t “tech savvy” is absurd. No one who tracks the company closely could believe that to be true.
Walmart is setting the gold standard for Unified Commerce (physical stores, e-commerce, livestreaming, virtual spaces, data). They have built a real commercial/retail ecosystem.
Is Realm for everyone? No. However, offering it as an option will bring in new customers and give current customers like me, who love to shop in multiple formats, a different experience.
Walmart is the epitome of mainstream America, and if they are going there, others will follow.
p.s. You can experience Realm without a headset, on your browser.
This is an experiment, and as such will yield results but nothing robust enough to be an important part of top line revenue growth.
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No, I do not think this will become mainstream. Walmart’s stores and its website are mainstream. By comparison this is, and will remain, a very niche part of the business, if only because it’s a rather odd way to browse products and not everyone wants or likes this gamified type approach. But that’s not the point. This is about experimenting with different ways of reaching customers and about showcasing the Walmart brand and products to younger shoppers. And on that front, I give Walmart full marks for trying something new! I find the curated shops very interesting as the virtual world allows influencers to really put their stamp on the whole experience.
Mainstream today, no, but despite what you hear in the news, virtual reality isn’t dead and going away. As it gets integrated with AI, it will continue to grow. Kudos to Walmart for trying to look to the future and test emerging technologies out. I’ll be checking this out!
All I can say is wow, a world that I never knew existed. It’ll be exciting to visit, but I don’t think this is the place. It will appeal the most to the customers but the ones that do are going to love it and become real boosters to the Walmart brand
As long as it doesn’t make me nauseous I’ll try it. I find most immersive 360 degree experiences do get me queasy
I’d like to move beyond the
click-baiteysensationalized approach to WalMart’s virtual ventures to ask a more basic question: have we moved beyond the stereotype of the typical WM customer…and if so, is that correct? We’re all familiar with that view – they’re not tech savy, in this particular case (income and cultural issues we’ll leave for another day) – but even if true, it tends to overlook the role that volume plays; so with something like virtual selling, where there is a large fixed cost component, they may be able to pull it off just because (even with) a tiny percentage of the customer base they still reaches critical mass. Do I think VR will dominate WM’s selling approach? No. Do I think it will be viable? Maybe.The pandemic was very good for Walmart, as Walmart was good to its workers and had the right stuff for shoppers. I have no interest in VR because it makes me nauseous, but Doug Mcmillon has made me a sometimes Walmart shopper.
Gen Zs and Alphas will demand the integration of virtual and physical retail experiences. In response, retail will evolve with more fun and seamless all-channel experiences that convert. More retailers will partner with charismatic influencers as media becomes more immersive, social and shoppable.
With Walmart Realm, Walmart keeps getting cooler by adapting to younger shoppers’ evolving expectations. Playful content embeds the retailer into consumers’ leisure habits, which can enhance engagement, trust and loyalty. The retail giant’s digital prowess has come so far in the last five years.
Why do you think they will demand that? I’m curious. AR, sure. But VR makes too many people nauseous. I’m not the only one.
The pandemic shifted these cohorts to be always-on for access to social belonging and entertainment. VR already lets them play together and shop in their video games (Michael Jordan jerseys, Air Jordans for their avatar). VR will evolve further to let players order products (frappuccinos, Kendra Scott necklaces) to their real-life doorsteps without having to leave the game.
Walmart Realm is an innovative experiment targeting younger shoppers with influencer-curated virtual stores. While Walmart Realm may remain a niche aspect of the retail business, the integration of virtual and physical retail experiences is likely to evolve, creating more immersive, gamified shopping environments and seamless in-game purchases. Challenges include ensuring consistent customer engagement, managing technological complexities, and maintaining data privacy and security. Retailers must balance innovation with reliable, user-friendly interfaces to keep customers engaged across both realms.
Traditional retail marketing strategies may adapt by incorporating more personalized, influencer-driven content to enhance customer loyalty and brand perception. By leveraging influencers’ credibility and reach, retailers can create engaging, authentic shopping experiences that resonate with younger audiences, fostering deeper connections and encouraging repeat business.
Walmart Realm intrigues me a lot but its much too early to predict that it will dominate. Realm will remain in the experimental stages with trial and error, plenty more experimentation, and stages of evolution.
Walmart’s traditional channels will remain the standard while Walmart embraces a new innovation and technology to further engage its digital customers. Db
Immersive commerce strategies, such as Walmart’s Realm platform, are another emerging engagement channel that attracts the next-gen consumer’s interest and a share of their wallet. While it is emerging, trending, and innovative, Walmart’s core business will clearly remain its stores, digital commerce platform, and online marketplace, backed by its impressive supply chain fulfillment capabilities.
However, when it comes to innovation, this represents another element that demonstrates that Walmart is not backing away from making the necessary efforts to build meaningful partnerships with Roblox, have a presence on TikTok, and seek new ways to engage and attract new customers. The Walmart Realm strategy enables creators to have the freedom of action in an entertaining and intriguing virtual world. It will be interesting to see how this evolves.
Walmart Realm is a unique experience that may interest shoppers to try the experience. However, there is a very limited selection of products and it is not an efficient shopping experience. It may appeal to some young shoppers for the visual experience, but I doubt it will drive much revenue for Walmart.
Way too early to be genuinely impactful, but smart PR move — and also it makes it clear that Walmart is not just playing it safe – they take reasonable risks and don’t mind sticking their necks out now and then.
Integrating complex virtual technologies, such as AR and VR, into existing retail systems will pose challenges, requiring careful planning and investment in infrastructure and staff training.
Secondly, influencer-led virtual shops will push traditional retail marketing to adapt by focusing more on personalisation and interactive content. This approach can strengthen customer loyalty by creating unique, memorable shopping experiences. It’s important for brands to maintain authenticity and quality in these virtual spaces to positively influence brand perception.
I would say, it is still important for brands to balance these new strategies with traditional methods to maintain a broad appeal (not just younger generations) and ensure that all customer segments feel valued.
This all sounds like the planting of a very early seed in the quest to attract and retain younger generations of customers. As a boomer, the last thing I am looking for is the gamification of my shopping experience. But a managed evolution of the retail model in recognition of what kind of shopping experience younger generations are going to be looking for…??? Absolutely. Bravo to Walmart for testing and probing their way into the future.
Any traditional retailer – especially mega-retailers like Walmart – must consider the blend of physical and digital experiences. They must keep up with technology and be quick to try new tech. Obviously, Walmart wants to dominate, as do other retailers. This is expected. Differentiating themselves with a new experience will be good for the customer.
Walmart Realm sounds like an exciting place to find some new products, especially for a specific type of consumer- they may be gamers, multiplayer engagements or similar, but it’s focused on a specific audience type, not necessarily your typical shopper.
The key factor is that the influencer-led environment will drive younger shoppers to visit and engage with WR, but the translation will be whether the curation is good enough to exceed what most such users are already engaged with from TikTok or YouTube. There is a place for WR, but I don’t see it becoming a shopping venue as you would a mall or brick and mortar store. It may capture digital product sales over time, or even drive increased store foot traffic, but the end result is a highly targeted group. The worlds, by design, will be about other things than selling, so consequently users will engage in other ways than buying.
I’ll start by saying I am surprised that only 31% of those polled answered yes to “will you try realms.” I’ve already tried it and found it to be innovative, fun, engaging, and easy to shop. I spent hours inside their space on Roblox when it launched and found it compelling. The idea that Walmart isn’t “tech savvy” is absurd. No one who tracks the company closely could believe that to be true.
Walmart is setting the gold standard for Unified Commerce (physical stores, e-commerce, livestreaming, virtual spaces, data). They have built a real commercial/retail ecosystem.
Is Realm for everyone? No. However, offering it as an option will bring in new customers and give current customers like me, who love to shop in multiple formats, a different experience.
Walmart is the epitome of mainstream America, and if they are going there, others will follow.
p.s. You can experience Realm without a headset, on your browser.
This is an experiment, and as such will yield results but nothing robust enough to be an important part of top line revenue growth.