Doug McMillon, CEO of Walmart Inc., made the following statement at the annual shareholders meeting in June 2019: “What’s the one thing busy families can’t buy at Walmart? Time….Or is it?” This quote is the perfect summation of Walmart’s current focus and provides insight into how Walmart believes they will continue to win with consumers in the future. Walmart is stressing consumer convenience and has invested heavily into maximizing its biggest competitive advantage, their stores.
Leveraging 4,500 Stores to Capture Online Consumers with Pickup
Walmart first proposed its version of click and collect called “Walmart Online Grocery Pickup (OGP)” in a September 2015 quarterly statement as a small test. Since then, Walmart’s expansion of the program has exploded to 3,100 stores as pickup locations, and 1,600 stores equipped for home delivery. This group of stores was strategically selected by Walmart as 80% of the U.S. population is within 10 miles of the stores. 45,000 Walmart store associates are dedicated to OGP as personal shoppers; the people picking and bagging items from the store shelf based on the customer’s online order. OGP is free and offers the same item assortment and low prices the consumer would find in stores (home delivery is $9.99). Walmart is taking the next step with delivery in a new service titled InHome. This program allows the Walmart associate to enter your home and stock the pantry and fridge. InHome is currently being tested in Pittsburgh, Kansas City, and Vero Beach, Fla.
Who is Shopping OGP and How are Sales Impacted?
Walmart is attracting new shoppers with the convenience and flexibility of OGP. According to Walmart, 60% of total OGP sales are from new shoppers. These shoppers have been identified as affluent who previously would not shop in crowded Walmart stores, but are now utilizing OGP for low prices and easy pickup. This new group of shoppers is spending more as well and driving basket ring. The average spend per Walmart trip for OGP is $125 vs $50 in a store. More overall shoppers are adopting OGP — 13 percent of all Walmart shoppers used OGP in 2019 and Walmart expects that number to double by end of 2020. Walmart CFO Brett Biggs said in Walmart’s most recent earnings report that Walmart expects its e-commerce business to approach $50B, representing a doubling vs current business by 2022. The driver of the growth will certainly be OGP.
Why Vendo is Your Walmart Digital Solution
Our dedicated Walmart e-commerce team is focused exclusively on all things digital Walmart across multiple item categories and is engaging multiple levels of Walmart leadership daily. Whether your focus is on enhancing your store items with a stronger Walmart.com or OGP presence or strictly on selling more on Walmart.com, we have a game plan for you! We understand no two brands are alike and tailor our service to your specific needs. We view ourselves as an extension of your brand family and will continually strive for success.
