Walmart Takes Learnings From Amazon & Target

Retail
Written By Rick Watson

Walmart released Q2 earnings in August, with eCommerce growing 6% y/y and on a doubling pace in 2 years. Now up to $75B in eCommerce sales.

I increasingly feel that Walmart doesn’t feel it needs to do something “different” to win. Just follow the best practices of Amazon and Target, but continue adding new ideas quickly as a fast-follower. A few notes:

  • Walmart Connect (Advertising) more than doubled year on year and active advertisers up 170%. A little scary that Amazon almost matched this on what is certainly a higher base, indicating to me that Amazon is still accelerating away from Walmart. (they dodged a question about the precise margin impact).

  • I thought the mention of WMT Mexico’s Walmart Pass - unlimited free shipping from stores was an encouraging nod towards Target’s ship from store strategy.

  • Walmart mentioned 5-6 years ago it felt that eCommerce was a “defensive” investment. Now it feels they are using it as offensive. About 6 years ago is when they acquired Jet. I think what they learned from Marc Lore is not what to do but instead, HOW to do it. Meaning, whatever you do, innovate quickly and learn.

  • Grocery: Walmart referenced Nielsen in a note about share gains, growing 6% year on year. Units growing faster than $ in this segment. Improved stock levels.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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