How Walmart Is Disrupting Its Own Model to Reshape Retail |
As the worlds largest company by revenue Walmarts physical footprint is massive It operates nearly 4 800 retail stores in the US alone But as shopping habits change staying competitive at scale means evolving quickly to meet customers where they are That means infusing its vast network of stores with digital-forward initiatives including several startup partnerships and cutting-edge technologies Think self-driving cars that deliver items to customers homes giant vending machines that spit out online orders and drive-in grocery pickup where customers can get fresh produce without ever leaving their cars Within a traditional retail environment the technology stands out But to Tom Ward Walmarts senior vice president of digital operations the tide of innovation can be traced back to one simple principle It all goes back to helping people How do we help busy families save money How do we help them save time in their busy days he says If we can figure out a way to do either of those things especially through our e-commerce channels and robotics and automation and technology then were all about doing that Here are some areas in which Walmart is innovating to achieve that goal DOOR-TO-DOOR DELIVERY IN SELF-DRIVING CARS Partnering with Waymo formerly a division of Google Walmart launched an autonomous vehicle delivery pilot program last summer in Chandler Arizona Ward says the test aimed to answer a number of basic feasibility questions How would customers react to an autonomous delivery service What would it look like when a self-driving car pulled up to a store to be loaded How would groceries go in back seat or the trunk How would the customer interact with the vehicle once it arrived at their residence Using data from the Waymo pilot Walmart launched another test in November 2018 partnering with delivery startup Postmates to deploy automated vehicles from Ford in Miami-Dade County Florida Ward describes the Ford partnership as unique They turned their attention to packages that are less complex within a tighter delivery radius and within a more defined series of parameters he explains So instead of figuring out the long-term macroeconomics we can negotiate with these providers and potentially bring that fee down and share that savings with our customers This year Walmart launched its most customized automated delivery pilot yet cargo vans built from the ground up to deliver fresh groceries by automated vehicle manufacturer Udelv Udelv were different in that most automated-vehicle companies tend to think about moving people Ward says But we move products to people Their mission was more in line with ours which is to get these groceries to someones door as easily as we can ORDER ONLINE PICK UP AT KIOSK Inside its stores Walmart is installing next-generation technology that gives customers new ways to shop The company has installed pickup towers vending-machine like retrieval systems for general merchandise in more than 1 200 stores nationwide Now shoppers can order online and pick up their items on demand Plus they have peace of mind knowing that expensive items such as electronics are kept safe rather than sitting on their doorsteps all day Previously customers would have waited at a counter or found an associate to help retrieve that package Ward says likening the service to how ATMs have eliminated the need to enter a bank to withdraw money Its a great example of an innovation that truly solves a problem Walmart is testing a similar concept specific to groceries at a store in Sherman Texas a refrigerated grocery kiosk that allows customers to place an order scan a code and grab their perishable goods Walmart is planning to scale that up Ward says noting the pilot has garnered positive reviews from customers who want to get their groceries home as soon as possible GROCERIES DELIVERED TO YOUR CAR DOOR In online grocery pickup human touch and technology combine to create a simpler faster experience for shoppers Customers can fill their baskets online select a convenient pickup time and receive those groceries at a designated pickup area without ever having to enter the store Specially trained personal shoppers select the ordered items throughout the store and bring them right to the customers car in the parking lot More than 2 700 Walmart locations currently offer free grocery pickup and 400 more are slated to add the service in 2019 Walmart is testing ways to make grocery pickup even speedier and easier for both its customers and its associates In Salem New Hampshire Alphabot a first-of-its-kind network of automated mobile carts retrieves ordered items from storage and brings them to employees at one of four pick stations The personal shoppers who still handpick items such as produce and other fresh goods then collect and pack the order doing so more efficiently than they could have if they had to walk the store to retrieve items Beyond grocery pickup in many US cities Walmart also provides online grocery delivery More than 1 100 Walmart stores offer same-day grocery delivery with plans to expand to 1 600 locations by year end WHATS NEXT This fall Walmart is also taking grocery delivery a step further In three markets the company is testing a unique service called InHome Delivery allowing customers to have groceries delivered directly to their refrigerators InHome Delivery associates will be highly trained using smart-entry technology and wearing cameras so customers can control access to their homes and watch the delivery remotely if they like More than 1 million customers will have the chance to try InHome Delivery through the pilot program in Kansas City Missouri Pittsburgh and Vero Beach Florida For Ward and his team in digital operations every innovation no matter the scale or state of deployment serves the same core goal Theyre all pieces of a puzzle that help us learn what makes sense to customers and what improves their experience and how we plan where we go next he says As customers needs change the need to save time is on par with saving money They know weve got great prices and theyre increasing their trust in us to save them time That message flows through the way we think as an organization This article was created for and commissioned by Walmart Do you agree or disagree that Walmart is an innovator in the retail industry Tap to respond Close Response options