Tech Investments To Boost Walmart's Dwindling Online Sales
In a bid to reverse dwindling online sales, Walmart, an American multinational retail corporation has strengthening its technology capabilities to boost the online business. Wal-Mart is making substantial investments in initiatives like online grocery pick up, the retailer’s two-day shipping program and its mobile wallet, Wal-Mart Pay.
“We get to reimagine retail again, and that’s what we are going to do,” Chief Executive Officer Doug McMillon said. He also said changes to boost e-commerce sales will take some time to show results.
His comments have come at a time when Wal-Mart’s online sales growth has sharply decelerated for five quarters even though its overall performance has been better than most competitors.
In the first quarter, online sales growth was 7 percent, down from 8 percent, 10 percent, 16 percent and 17 percent in the previous periods. In 2015, Wal-Mart’s online sales rose 12.3 percent to $13.7 billion, which was less than the jump of more than the 16 percent for market leader Amazon.com Inc, to $92.4 billion.
Although the company did not state the exact amount that it wants to invest in technology, it can be safely assumed that it will be a substantial sum considering the sheer size of the customer base that Walmart enjoys.
Wal-Mart has recently announced a partnership with Uber to deliver online groceries. Under the new partnership, Walmart customers can place a delivery online and a Walmart employee will then request a driver from Uber or Lyft.
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