Major Prateek Chamoli (Retd)’s Post

Walmart eyes wealthier shoppers Walmart has been trying to attract wealthier customers for some time but has yet to be successful. However, the retailer is not giving up and is now renovating or building more than 800 stores in the US to feature more attractive displays and higher-end products such as blazers and duck breast. According to an executive, the early signs are promising - sales at the renewed locations are rising faster than at other #Walmart stores. With high inflation, higher-income shoppers are increasingly turning to Walmart. The challenge now is to keep them coming back. Surprisingly, the biggest group of Walmart customers are households making $50,000 to $75,000 a year, accounting for approximately 18% of visits. #retail #AI #tech

I chatted with Fortune about how Walmart is gaining customers, including from Target. The highest growth in terms of new customer additions has come from those making over $100,000 a year. The forward challenge will be to retain these shoppers. Former CEO, Bill Simon, is concerned that once the economic cycle picks up Walmart will lose many of the shoppers it has gained. In terms of retention, our own research shows that 77% of those who have started shopping at Walmart for groceries over the past couple of years say they intend to continue frequenting the store. This fits in with other shifts during previous downturns: the dollar stores picking up more shoppers who didn't drift away, and Aldi making gains that it retained for the long haul. This is all good news for Walmart, although it arguably needs to be aware that a sizable minority may switch. The bigger challenge, however, is to get more of these newer customers to cross the aisle to buy general merchandise – and there is far more hesitation here. However, Walmart’s committed investment to improve its stores will help on this front. Thanks to Fortune for including more of my thoughts in the article linked in the comments. #retail #retailnews #shopping #bigbox

📊 **Walmart WFS Q4 Update: October Success Recap!** 📊 We’re thrilled to share some exciting numbers from October 2024 on Walmart's WFS platform! 🚀 - **GMV**: $79,633.25 💸 - **Units Sold**: 2,180 📦 - **Orders**: 2,078 🛒 - **AUR (Average Unit Retail)**: $36.53 With an ROI of 25%, these numbers highlight our team's dedication to driving sales and optimizing our clients' growth this quarter. This success is a testament to effective listing, advertising strategies, and a focus on high-impact conversions. As we dive deeper into Q4, our goal is to maximize every opportunity in the upcoming months. Looking forward to hitting even bigger milestones! Sana Maryam #WalmartWFS #Q4Sales #EcommerceSuccess #RetailStrategy #USA #Europe #EcommerceOptimization #OnlineSales

In the world of American retail success stories, it’s impossible to ignore how giant Walmart is. Just mentioning the name will bring about connotations of scale that are difficult to fathom in our modern context. So, we have shed light on how and why Walmart became so successful in terms of business, strategy, and more! https://lnkd.in/gq-GbCk4

💡 "There are two types of retailers: the merchandise-driven and the operations-driven. The ones that are truly merchandise-driven can always work on improving operations. But the operations-driven ones tend to level off and begin to deteriorate." I read that yesterday in Sam Walton's book where he talks about the story of building Walmart. Walmart was built on discounts, which was a trend Sam observed early on in the 60s. They would find the right merchandise and price them below market to win by selling in quantity. The ability to perceive trends is still very alive in Walmart and the company shares hit a record high this week after analysts raised the stock price target to $89 from $76. Two recent changes are driving this optimism: 🛒 Their new focus on convenience by implementing home delivery, buy-online-pick-up-in-store, and subscription services. 🛒 Adding high-margin revenue streams like advertising and Walmart Marketplace for third-party sellers to help subsidize retail operations. The largest retailer in the world continues to be merchandise-driven and very adaptive to market changes and opportunities. Always great to observe cases like that. Well done 👏 #retailinnovation #walmart #retailtrends #retail

Walmart Q2 earnings report is out, and they crushed it! As businesses and investors are searching for clues about consumer demand, Walmart said Thursday that its U.S. comparable sales, which measures both stores and e-commerce, rose 4.2% in the three-month period ended July 26, a faster pace than in the previous two quarters. I have been amazed how often Walmart has been overlooked or underestimated by the media and analysts. At the height of Covid, I was doing interviews on a regular basis and the media was fixated on the demise of brick and mortar and focused on e-commerce. No retailer is in closer proximity to the core of the United States population than Walmart. Walmart's techonology matched with their store fleet positions them perfectly as retail evolves. I encourage anyone with an interest in retail to travel to Bentonville, Arkansas. If you do, you will find the Walmart story even more amazing. No excuses as to your inability to operate a successful business if you aren't in a gateway city. Nice work by leadership and all the Walmart team members! #retail #retailnews #retailtrends #cre https://lnkd.in/gPjUVzKG

💥CASE STUDY: Kmart Vs Walmart💥 In 1979, Kmart was the leader in discount retailing, leveraging its size for better purchasing and marketing. However, just a decade later, Walmart emerged as the dominant player, completely overtaking Kmart. So, what did Walmart do differently?🤔 1. #CustomerFocus: Walmart prioritized understanding customer needs, offering high-quality products at competitive prices. They built trust with their customers by being reliable. 2. #InformationTechnology: Walmart invested in technology to enhance communication across its supply chain. They used a private satellite system to share sales data directly with vendors, ensuring timely stock replenishment. 3. #EfficientTransportation: With a private fleet of trucks, Walmart improved delivery times, often replenishing stock twice a week. This efficiency helped reduce costs, which were passed on to customers through lower prices. 4. #EmpoweredEmployees:Walmart decentralized management, allowing store managers to make decisions about products, pricing, and promotions. This approach fostered a more responsive and engaged workforce. 5. #HumanResourceInitiatives: By offering stock options and profit-sharing, Walmart motivated employees to invest in the company’s success, creating a committed workforce. In conclusion, Walmart’s success stemmed from its relentless focus on customers, efficient operations, and an empowered team. These strategies not only helped Walmart grow but also served as a powerful lesson in business adaptability. Walmart #Retail #BusinessStrategy #CustomerExperience #Walmart #Kmart #SupplyChainManagement

Really strong Q3 from Walmart: 💵 Total revenue: +5.5% 🇺🇸 Walmart US revenue: +5.0% 🥫 Walmart US comps: +5.3% 🛒 Sam's Club: +3.9% 📈 Net income: +910.4% A few years ago, Walmart recognized that middle-to-upper income families began flocking to the retailer in search of deals amid rising inflation. To retain this new customer segment, Walmart invested millions in refurbishing its stores and enhancing its product assortment. As a result, with lower-income families (Walmart's traditional core customer) returning as well, the retailer has successfully broadened and diversified its customer base. Oh, and they also raised guidance heading into the holiday season. #retail #retailnews #shopping

Walmart is thriving ahead of the holiday season, reporting significant growth in its latest earnings. Consolidated revenue increased by 5.5% year-over-year to $169.6 billion, with U.S. sales up 5% to $114.9 billion. U.S. comparable sales rose 5.3%, while e-commerce sales grew 22% domestically and 27% globally. Walmart also saw its marketplace expand by 42% in Q3, demonstrating its successful focus on e-commerce. CEO Doug McMillon attributed these results to efforts in lowering prices, growing newer businesses, and appealing to diverse markets, including upper-income households, which accounted for 75% of the company's recent growth. In contrast, other discount retailers like Family Dollar, Walgreens, and Big Lots have been struggling, with closures of 677, 259, and 360 stores, respectively. Experts cite several factors for these struggles: - The end of a COVID-era "retail sugar high" that temporarily boosted sales. - Fierce competition from giants like Walmart and Amazon, which leverage economies of scale to offer lower prices. - Macroeconomic pressures like inflation and high interest rates, which have made consumers more price-sensitive. Walmart’s ability to attract higher-income shoppers and expand its e-commerce capabilities has intensified challenges for smaller discount retailers. These businesses are finding it increasingly difficult to compete in a market dominated by larger, more resourceful players. #RetailTrends #WalmartSuccess #EcommerceGrowth #RetailIndustry #DiscountRetailers #MarketCompetition #EconomicImpact

At a time when the American consumer’s resiliency has been questioned, Walmart has thrived. The world’s largest retailer, famed for its discount prices but increasingly known for its pursuits in advertising and an online marketplace, is headed for its best year since 1998. Its shares have surged 82%, adding roughly $340 billion to Walmart’s market value this year. Compare that to many of its peers. Shares in Dollar Tree and Dollar General, which should have also benefited as the economy cooled and shoppers hunted for bargains, have slumped more than 40%. Walmart has outperformed rival Target and other retail heavyweights like Amazon and Costco too. Looking ahead to 2025, analysts and investors anticipate that Walmart will continue to set itself apart from its retail peers. They’re betting that further market-share gains and increased profit contributions from Walmart’s higher-margin ancillary businesses will extend the stock’s rally. https://lnkd.in/e6PjJgXH