Walmart is making a multi-million dollar investment in remodeling more than 400 stores to improve the in-store pickup experience for online shoppers, Retail Dive reports.
Walmart remodeling hundreds of US stores (WMT)
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The remodeling efforts will move pickup service locations to the front of stores, and add lounge areas for customers waiting to collect their orders. The investments will also include merchandising changes that will broaden grocery selections and bring in more fresh and organic products. Walmart already offers click-and-collect for online grocery orders at 670 locations in the US, its executives said during its last earnings call.
Walmart is one of many brick-and-mortar retailers looking to use omnichannel fulfillment methods that leverage their stores to better compete in online retail. So far, it’s efforts in this area seem to be paying off — Walmart reported 63% YoY online sales growth in the US in Q1 2017. The retailer also started offering discounts to customers who pick up their orders in-store earlier this year, as its only costs 75 cents for the company to ship a package to its stores, Marc Lore, Walmart’s head of US e-commerce, said recently. In comparison, it costs Walmart $5 on average to ship a package to customers’ homes. Providing amenities like a lounge area — along with discounts — could help Walmart expand its click-and-collect customer base as it chases Amazon in e-commerce.
Click and collect — a fulfillment option that lets shoppers place an online order and pick it up at a store — is thriving in the UK.
Over half of UK shoppers report having used this method in the past year
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- Mobile is a fundamental driver because it affords consumers more flexibility in the purchasing process. As a result, many UK consumers are purchasing goods on their mobile phones, and then picking them up on the way home from work, the gym, appointments, etc.
- The service is particularly popular among grocery chains, with many of the UK's largest supermarkets offering click and collect. Since trips to the grocery store are made frequently and regularly, click and collect is a perfect fit for shoppers who want to avoid recurring issues like long checkout lines and crowded stores.
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