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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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