Walmart Invests $1.2 Billion in Geo-Fencing and Wish Lists for Enhanced Shopping Experience
According to The Sun, Walmart has made a significant financial commitment this year, investing $1.2 billion to improve its business strategies and customer benefits. As e-commerce becomes increasingly integral to shopping for American consumers, the retail giant is adapting its operations to compete with industry leaders like Amazon. Experts believe Walmart is at the forefront of this competitive race, according to insights from eTail.
Embracing Omnichannel Retailing
For some time now, Walmart has been positioning itself as an omnichannel retailer. This strategy aims to provide a seamless and comprehensive consumer experience across in-store, mobile, and online shopping platforms, as defined by Oracle. Walmart+ members benefit most from this approach, paying an annual fee of $98 to enjoy exclusive perks.
One such feature is the Scan & Go, which allows customers to use their phones to scan items and generate a single barcode before reaching the checkout area. This feature streamlines the in-store shopping experience. Additionally, customers can conveniently order groceries or other products online for home delivery, complete with free shipping.
A Seamless Shopping Experience
Walmart CEO Doug McMillon has promised customers a seamless shopping experience, emphasizing the company’s commitment to innovation. “We will be the first to deliver a seamless shopping experience at scale,” he stated in an interview with eTail.
McMillon highlighted that regardless of how customers choose to shop—be it through mobile devices, online, in-store, or a combination of these methods—Walmart aims to ensure that the process is both fast and easy. He noted that Walmart’s extensive network of stores, coupled with a robust supply chain and emerging digital capabilities, positions the company to excel in delivering this promise.
Leveraging Technology for Enhanced Service
One of Walmart’s significant technological advancements is the implementation of geo-fencing technology across its more than 4,600 U.S. stores. This technology enables Walmart to recognize when customers arrive at the parking lot for online pickup orders. It can quickly detect their loyalty accounts on mobile devices, enhancing the efficiency of the pickup process.
Additionally, Walmart has introduced a wish list feature that allows customers to save their favorite items. Users can create and manage their lists through the Walmart mobile app or website, or they can scan items in-store to add them to their wish list.
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McMillon anticipates that the effectiveness of geo-fencing technology and the wish list feature will continue to grow, projecting more than 210 million visits to the Walmart app in November and December, a substantial increase from 18 million in 2021.
The Profitability of Pickup Services
All of Walmart’s initiatives are part of a broader mission to deepen digital relationships with customers. This effort includes expanding grocery pickup services, which are now available at over 140 Walmart locations. McMillon noted that this service has proven to be highly profitable, as customers who utilize online grocery pickup tend to spend nearly 50% more than those who only shop in-store.
“This is the customer we’re going after—the shopper in our sweet spot who accesses Walmart in multiple ways,” he explained.
Walmart also made headlines earlier this spring by testing a drone delivery service in Texas, although this initiative has since been scaled back to one area. Through these various strategies, Walmart continues to innovate and enhance the shopping experience for its customers.
