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Read by
BCG
500 Startups
Used at top MBA programs including
Stanford Graduate School of Business
University of Chicago Booth School of Business
Wharton School of the University of Pennsylvania
Kellogg School of Management at Northwestern University
Summary
  • Walmart is one of the relatively few companies that may emerge better positioned on the other side of the COVID-19 crisis. In a recent survey, 58% of shoppers buying groceries online for the first time bought from Walmart.
  • It continues a pattern that started even before the crisis, with Walmart taking ecommerce share from Amazon. With unemployment rising, Walmart’s low prices will likely continue to be appealing to consumers.
  • Walmart’s investments in grocery pickup and same-day delivery, as well as ecommerce and in-store automation, are serving it well right now. Its strategy is about making “bricks and clicks” work better together, with its footprint of 3,500+ supercenters as the centerpiece.
  • It plans to begin testing a paid delivery membership program called Walmart+ with the hope of attracting younger higher-income shoppers and a larger higher-margin basket size. Amazon, however, is not standing still.
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