Walmart’s Key to Unlocking its Full Online Growth Potential
According to a Credit Suisse analyst, Walmart plans to hit a 40% US online growth target by 2019, and the company may have found a way to relieve its online growth concerns, as well as get it to its targets in the next two years.
This rollout will be available to around 40% of US households by the end of the year.
Around 90% of Americans live within 10 miles of Walmart’s brick-and-mortar stores, giving the company a significant advantage over its competitors.
Due to its proximity to customers, Walmart could use its physical locations as a distribution hub to leverage its supply chain and provide faster deliveries.
Moreover, Walmart’s online grocery delivery rollout will supplement the retail giant’s ongoing expansion of grocery pick-up offerings, resulting in 2,200 stores that offer this service from 1,100 stores by this year.
Sigman has been optimistic about the company’s “click and collect” option – which allows customers to shop online through its website and pick up groceries at Walmart’s physical locations – seeing it as an opportunity to drive incremental sales growth.
Coupled together, this is where the retailer can shine, Sigman says, because online grocery still remains “largely an untapped market.”
“For Walmart, given how early it is, we think it can lead the growth, and attain [online grocery] share well above their online market share today in other categories.”