Walmart’s

New Supercenter Strategy

 Table of Contents

INTRODUCTION AND OVERVIEW

01 Walmart's latest activities and challenges

WALMART'S SUPERCENTER BUSINESS STRATEGY

02 Key Components

CHALLENGES AND RISKS:

03 What were the risks that Walmart had?

TECHNOLOGY IN SUPPORT OF WALMART

04 How much does technology support that strategy?
 INTRODUCTION
Walmart is a global American chain stores and the largest company in the world
by turnover.
It mainly operates in the retail industry and through the mission statement of
"Everyday Low Price", Walmart continues to develop.
As of January 2023, Walmart is the largest retailer in the world, with 10,623 stores
and 380 distribution facilities in 27 countries.
More than 58% of its revenue comes from in-store grocery purchases.

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 Walmart's net sales worldwide
from fiscal year 2006 to 2023 (in billion U.S. dollars)

Source : Walmart Survey by: Walmart Source link: Walmart - 10-K Report 2023, page 40
 OVERVIEW
Walmart's latest activities and challenges

 In recent years, Walmart has been struggling

to create a profitable e-commerce presence.
Although its e-commerce and in-store sales
have grown, these gains have been costly.
 Walmart spent very heavily to improve stores
and grow online, trying to overtake
Amazon.com, but losses piled up amid the
high costs.
 Walmart U.S. online operations lost $2 billion
in 2019.
 In late 2018 CEO Doug McMillion directed
Walmart’s e-commerce unit to aggressively
cut spending.

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Share of total consumer spending by Amazon and Walmart, over time

Source: PYMNTS Intelligence

The Whole Paycheck Report, March 2024
PYMNTS Intelligence estimations based on Amazon and Walmart earning reports and national data from the Bureau of Economic Analysis
 Walmart's Supercenter Business Strategy

Providing a Wide Range of Products and

01 Services

02 Customer Convenience and

Experience

03 Data Monetization and Advertising

04 Edge Computing Centers

 Providing a wide range of products and services

Walmart offers a wide range of products and services that allow it to reach all highly potential
customers with its range of items it can provide, clothing, electronics, prescriptions, financial
services, and more. Diversifying leads to commercial growth and also reaching new potential
customers, increased sales, and consequently, higher profitability.

Customer convenience and experience

In these places people will be able to meet with a large amount of availability every day of
the week, 24/7 accessibility, different services or facilities like haircuts, centralizing pharmacy,
and vision among other services.

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 Data Monetization and Advertising

Using the data of one hundred million customers to sell online advertising to different brands to obtain
monetary benefits.
This independently creates profits and in turn allows clients to reach you in a slightly more effective way,
generating income.

Edge Computing Centers

Planning to build edge computing centers, where data are processed physically close to where they are
being collected, which would enable the data to be processed more rapidly by cloud computing. The edge
computing system would be spread out among Walmart retail locations for use by autonomous vehicles
and other systems that need to process large amounts of data quickly.

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Walmart’s Supply Chain Management
Importance of SCM: Efficient supply chain management
enables companies to:

Cutting down of expenses

Improvement of customer satisfaction

Raising competitiveness levels

Decrease inventory levels

Escalating sales revenue

 Walmart’s SCM Strategy
 Inventory management via JIT approach.

 Efficient logistics through suppliers’

collaboration.
 Advanced inventory tracking tools and
systems.
 For Timely Deliveries, Distribution
Centers are Strategically Placed.
 For instance, Walmart’s SCM enables it
cut costs and thus provides a platform
for competitive pricing to its customers
thereby leading to victory in retail
business
 Bricks-and-Clicks Business Model of Walmart
Brick and Click refers to a business model involving both traditional brick-and-click stores and
online activities

Main features
 Physical presence: Store locations for in-person shopping
 Online platform: E-commerce website for virtual shopping
 Omnichannel integration: Seamless shopping experience across both
channels

Advantages of Bricks-and-Clicks Model

 Increased reach and accessibility
 Diversification of revenue streams
 Synergies between online and offline store networks
Example: As Walmart tried to merge its e-commerce capabilities with the use of
their existing physical stores, it came up with an idea called Supercenter.

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Challenges & Risks
The difficulty of successfully implementing Walmart’s
supercenter strategy

Expensiveness and complexity of some supercenter

capabilities

The risk of distracting Walmart from its core retail

operations

The existence of a very crowded and competitive

playing field in retail, both online and in physical stores,
as well as having strong competitors such as Amazon

Having a costly experience in the field of e-commerce

13 Logo
How much does
Technology
support that
Strategy?
 Technology plays a crucial role in supporting Walmart's supercenter
strategy across multiple forms

01 Data Analytics and Personalization

02 Supply Chain Optimization

03 E-Commerce Integration

04 Edge Computing Centers

 Data Analytics and Personalization

The technology allows Walmart to collect and analyze large amounts of customer data, where it allows
targeted advertising to be sent with personalized experiences both online and in the store.

Supply Chain Optimization

Technology facilitates efficient inventory management and supply chain operations while offering a wide
range of products, they minimize costs and maximize convenience for customers.
 E-Commerce Integration

Integration technology allows Walmart's customers to access services like online grocery pickup or delivery
through the supercenter network..

Edge Computing Centers

The implementation of computing centers improves the capabilities of supercenters for faster data
processing and supports innovative services with deeper levels to process small stores, and smart cars,
among others.

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TECHNOLOGY IN SUPPORT OF STRATEGY

 Generally, technology serves as a fundamental

element in each of the strategies and allows the
company to offer a wide variety of products and
services.
 In turn, Improving the customer experience,
optimizing operations, and generating additional
income, are through the monetization of data
and computing services that are at the vanguard.

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THANK
YOU!