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Disruptors 2019: Walmart

Russell Redman

January 22, 2019

3 Min Read
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Walmart has become a technology leader in such areas as automation, robotics, artificial intelligence and driverless delivery vehicles.Photos: Walmart

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This is part of Supermarket News’ 2019 Disruptors package. See the entire lineup here.

It’s hard not to be impressed by Walmart’s brick-to-click transition. Think it’s easy for a company of this size to change direction?

Not so long ago, Walmart championed formats like Neighborhood Market and Walmart Express as a key to its expansion, seeing smaller stores as a way to penetrate lucrative urban markets lacking sites for a supercenter or full discount store. But Amazon’s emergence as a chief competitor swayed Walmart to switch gears from physical stores to e-commerce as a growth driver.

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In relatively short order, the Bentonville, Ark.-based behemoth has transformed into a bona fide omnichannel retailer, cultivating an ever more seamless shopping experience between brick-and-mortar and digital.

Along the way, Walmart also has become a technology leader, spanning such areas as automation, robotics, artificial intelligence, machine learning, driverless delivery vehicles, cashierless purchases, scan-and-go checkout, mobile transactions and virtual reality.

The retailer, too, has shown its smarts by leveraging its physical locations to propel e-commerce, such as through in-store pickup towers, customer pickup-only facilities and the conversion of 63 Sam’s Clubs into online fulfillment centers. And on the flip side, subsidiary Jet.com is providing an avenue into New York City, where Walmart historically has found it difficult to locate stores.

What will Walmart do next? Deutsche Bank analyst Paul Trussell predicted Walmart would surpass Amazon in online grocery market share by the beginning of this year.

“The retailer is reaping returns on the many years of investment in e-commerce and customer service, and we believe the company is now in position to accelerate market share gains in grocery,” he wrote in a research note.

Amazon led the online grocery market in 2017 with sales of $2 billion for a 12.5% share, followed by Walmart at sales of $1.78 billion and an 11.1% share, according to Deutsche Bank. “Further, we believe Walmart could reach 17% online grocery market share by 2025,” Trussell said.

Walmart expects to have 2,140 online grocery pickup sites, covering 69% of U.S. households, and online grocery delivery through 800 stores, covering about 40% of the population, by the close of its 2019 fiscal year at the end of January. For fiscal 2020, the retailer is targeting about 3,100 curbside pickup and 1,600 delivery locations by the year’s end.

Wolfe Research analyst Scott Mushkin described Walmart as one of the “scary monsters” in grocery retail, along with Amazon-Whole Foods. “There’s likely to be an arms race for share and consumables,” he said at the 2018 SN Financial Analysts Roundtable. “The two guys that seem most able to take that share do seem to be Walmart and Amazon.”

Walmart said it expects to reach its goal of 40% growth in U.S. e-commerce sales for fiscal 2019, and 35% growth is projected for fiscal 2020.

“We’re adapting and transforming with speed to better serve our existing customers and reach new ones,” President and CEO Doug McMillon said at Walmart’s 2018 investors meeting. “While we’re excited about what we’ve done so far, we aren’t satisfied. As we execute today and build for tomorrow, our associates and unique omnichannel assets position us for success.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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