A Fresh Take: Walmart Partners with Trendy Fast-Food Brand, Leaving McDonald’s Behind
According to The Street, Whether you prefer shopping in person or online, chances are you’ve recently visited a superstore for various supplies. This could be for back-to-school items, deals on electronics, pet supplies, workout gear, groceries, or specialty items. The reality is that many Americans are becoming increasingly price-sensitive, choosing to shop at stores with better pricing, even if it requires driving a bit further or straying from their usual locations.
Walmart’s Strong Performance in 2024
This shift in consumer behavior is one reason Walmart (WMT) has excelled financially in 2024. The retail giant reported stronger-than-expected fiscal Q1 2025 earnings in May, with notable growth across most of its major categories, attributed to its price-rollback initiative.
“Our results were stronger than we anticipated, with sales growth of 5.7% and adjusted operating profit up 12.9% in constant currency. All three operating segments performed well,” said Chief Executive Doug McMillon during the earnings call.
Walmart has made it a priority to reduce food prices back to pre-inflation levels, and these efforts have evidently resonated with consumers.
Overhauling the Shopping Experience
In addition to lowering prices, Walmart is also focused on revamping the shopping experience to make its stores more inviting. McMillon noted, “Our store remodels look good and are performing well. Plus, our curbside pickup and delivery capabilities are improving, as indicated by our customer experience metrics.”
The retail giant has committed at least $9 billion to enhance its stores, aiming to make them cleaner, more navigable, and refreshed over the next several years, impacting at least 1,400 locations. Some of the planned changes include:
- Updated interiors and exteriors
- New paint, signage, and shopping carts
- More spacious, navigable aisles
- Redesigned checkout areas
- Larger, centrally located pharmacies
- Revamped vision centers featuring more designer eyewear
- Interactive displays showcasing home designs, bedding, and furniture
- Digital displays to provide product information
- Increased space for pickup-and-delivery services
- Seasonal items available in the dollar shop
- A Grab & Go section offering fresh meals and drinks
New Food Offerings to Attract Customers
Walmart is also refreshing its in-store food options to attract a new wave of customers. Traditionally, many Walmart locations have featured fast-food options like McDonald’s, Subway, and Taco Bell. However, management believes that enhancing food offerings is essential for drawing in new clientele.
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On Tuesday, Walmart announced a partnership with Knuckies Hoagies, a chain from Milton, Georgia, known for its fresh specialty sandwiches and cheesesteaks. This collaboration will also allow franchisees to open an Alumni Cookie Dough spot in each location.
Founded in 2019, Knuckies made QSR’s 40/40 list in 2023, recognizing it as one of the most popular restaurants in the U.S. with fewer than 40 locations. Currently, it operates 14 shops in Walmart stores across six states, including:
- Georgia
- South Carolina
- North Carolina
- Tennessee
- Oklahoma
- Texas
Additionally, Walmart has introduced other food shops in hundreds of locations throughout 2024. Earlier this spring, the retailer began a partnership with Mr. Gatti’s Pizza in over 90 stores and expanded its collaboration with Uncle Sharkii’s Poke in January.
Conclusion
With these strategic initiatives, Walmart is positioning itself to thrive in an increasingly competitive retail landscape. By focusing on affordability, enhancing the shopping experience, and refreshing its food offerings, Walmart aims to retain its status as a go-to destination for budget-conscious consumers.
