Shopper Marketing - May 2017 - 51
Of all these moves, the Jet.com purchase is seen by many experts as potentially having the most impact on
Walmart's business. "Jet.com is perhaps
best known for an algorithm that encourages bulk buying. Incorporating its 'smart
cart' model into Walmart's buy online,
pick up in-store offering could boost the
retailer's overall sales," explains Caldwell.
The significance of the purchase extends
beyond the supply chain: "We're also
seeing a significant restructuring of human resources and additions to the talent pool that will support the next generation of growth for Walmart," he says.
In the meantime, the retailer continues to accelerate the pace of many of its
key digital initiatives. In recent months,
Walmart has blanketed the Southern U.S.
with its grocery pickup service and expanded the program into more than 80
markets. According to Forbes, 90% of the
U.S. population lives within a 15-minute
drive of a Walmart store. That kind of scale
gives the company significant built-in advantages, says its president and CEO of e-
commerce, (Jet.com founder) Marc Lore.
"Leveraging the store capabilities with
in-store pickup is a huge advantage because it avoids last-mile delivery costs,
which is about 70 to 80% of total delivery cost," he recently told analysts. "If
you're able to fulfill stuff in an e-commerce warehouse and you have enough
volume to line haul stuff directly to the
store, your cost to ship is $1 per package.
It's an incredibly powerful asset."
As Walmart draws on all of its assets,
marketers must strengthen their own
commitments in order to ensure further ecommerce gains with the retailer, Caldwell
says. "Today, CPG companies must have
dedicated resources for e-commerce and
a digital strategy with Walmart given the
customer's direction and shoppers," he
says. "However, it is not enough to have
item pages on Walmart.com or dedicate
a certain budget to e-commerce. Suppliers now need to be considering how an
item can succeed in a holistic way across
every shopper touchpoint from online to
Catapult is a conversion marketing agency, where
branding and buying are part of a total solution. Catapult's
data-driven approach identifies the core, actionable insights
that inspire brilliant creative with the power to convert
consumers into shoppers, shoppers into buyers, and buyers
into loyal advocates. Catapult delivers channel-agnostic
solutions that are brand savvy, retailer smart, and digitally
enabled. Catapult is an Epsilon brand. Visit them at
www.catapultmarketing.com and on Twitter @catapultmktg.
MAY 2017 SHOPPER MARKETING y