4. Walmart is trying to beat Amazon at its own game
Walmart is running headfirst at Amazon, or at least it is trying to. After suffering its first decline in sales in 2015 since 1970, Walmart entered into attack mode. It purchased a host of eCommerce businesses including Jet.com for $3 billion, Bonobos for $310 million, Eloquii for $100 million and ModCloth for between $50 million to $75 million. In addition to getting Marc Lore, an eCommerce visionary, out of the Jet.com transaction these brands allow Walmart to cater to a more upscale consumer that might typically shop at Amazon.
Walmart is also making a concerted effort to drive more traffic to its website by adding more third-party sellers. Since Walmart’s marketplace is not as crowded as Amazon’s individual sellers have a better chance at getting noticed. Between 2016 and 2017 Walmart went from having 10 million items on its website to having 50 million. Lord and Taylor products are also sold on Walmart.com now.
Finally, in an attempt to compete with Amazon’s Prime Now two-hour delivery service (only on selected items), Walmart added curb-side grocery pick up at 1,000 new locations in 2018 and now the service is available at 2,100 stores. Walmart’s strategy is working, eCommerce sales grew by 40% in 2018.
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