Wal-Mart is going to reward those clients who make the best out of both online and real-life platforms. This means that millions of consumers will receive discounts if they order their products online, but they come to the nearest supermarket to pick them up. Through this new strategy of discounted order pickups, Wal-Mart intends to challenge one of its greatest industry rivals, namely Amazon.com Inc.
Walmart Will Extend Its Discounted Order Pickups to 1 Million Types of Products
Over the past few years, Walmart has been on a rampage to acquire new exquisite additions to its portfolio of brands. The American retailer intends to make the most of its resources. As of recently, Walmart named its $3 billion acquisition, Jet.com, a key player in its direction towards discounted order pickups.
Thus, starting next week, Walmart customers are going to receive a reward. The bounty is unlocked only if consumers order certain ranges of products online and they pick them up in store. This way, the retailer saves up a lot of financial and logistical efforts that deliveries imply. In its initial form, the promotion will cover 10,000 items that belong to the chain of stores under the Jet.com brand. However, the company intends to expand the available products in the promotion to 1 million types.
Marc Lore Wants to Ease Down on Last Mile Delivery
The CEO of Walmart, Marc Lore, explained this strategy as a way to remove pressure from their last mile delivery. After doing the math, executives concluded that it is more cost effective to send the products from warehouse to stores than to ship them from stores to homes. However, the company wants to share the savings with its clients through discounted order pickups.
On the other hand, the new promotion is a new way to gain more influence over Amazon. The two industry players are racing in offering the best prices for their customers. Since Lore became the CEO, he worked diligently on ensuring the company a competitive position within the industry.
Walmart invested a lot of funds lately on acquisitions. However, this business decision is already paying off. Through new brands such as Modcloth, ShoeBuy, and Moosejaw, the company gained access to a new range of clientele. Moreover, by taking advantage of business developments such as the ones over Jet.com, Walmart recorded 29% increase in online sales during last winter holiday season.
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