By Gaurav Pradhan
Online Retail Universe is looking forward for a big turn-around as some big brick-and-mortar Retailers are looking to enter into Online Retail. On 15th October 2014, Walmart Stores Inc. has announced that it will be looking into the e-commerce, entering into digital retail space. They are thinking of investing an estimated US $ 1.2 – 1.5 billion in FY2016, compared to their earlier investment estimation of US $ 1.0 billion in FY2015. This huge investment is required to develop the infrastructure and technology which can support the growing online retail business.
Growing Online, Moving away from Brick-and-Mortar Stores
Walmart has realized that Online Retail has started growing. They are thinking of slowing down on physical stores and planning to create ‘Endless Aisle’ for customers whose buying behavior has started changing. ‘Endless Aisle’ is term used by retailers like Walmart to describe the offerings of a broader assortment online compared to any single physical store. This move is supported by the increase of web sales expecting it to be 25% in FY2016, growing further to 30% in FY2016 and 40% in FY2018.
The E-commerce CEO has announced establishment of two new online fulfillment centers – Georgia & Pennsylvania. These centers are a part of online sales strategy – ‘Next-Gen Fulfillment Network’ – including designated online fulfillment centers, distribution centers and partnering with some stores for shipping some online orders.
Online Retail – The Future of Retail
As holidays are coming nearer, Walmart is gearing up its stores and are also hopeful of increase in Online Sales. It is expected to rise to 13.5-14%. Walmart experienced the fastest online sales growth in FY2013 which also exceeded worldwide online sales growth of Amazon which was 20.3%. This has instilled confidence in Walmart to invest more on online retail infrastructure.
It is evident if Walmart comes strong in Online Retail Domain, the Online Retail landscape will definitely change. We can look forward to see more options for customers – and more benefits for them.
(Author is a Management student of IIM Bangalore having an experience in Manufacturing Industry, Follow On Twitter @GauravToYou)
— Social Media Trend (@SocialMTrndInd) October 17, 2014
In The Battle Against Amazon, Walmart.com Beefs Up – Forbes – http://www.forbes.com/sites/retailwire/2014/10/17/in-the-battle-against-amazon-walmart-com-beefs-up/
Shopping goes a Level Up : Purchase on Social Media – Social Media Trend – https://www.socialmediatrend.in/marketing/shopping-goes-a-level-up-purchase-on-social-media/
Social Media Advertising : Why Companies are focusing on Social Media – Social Media Trend – https://www.socialmediatrend.in/marketing/social-media-advertising-why-companies-are-focussing-on-social-media/