If you're a fan of frozen drinks and Drew Barrymore, Walmart (WMT) has got just what you need.
The world's largest retailer is offering Drew Barrymore’s Slush Crush for $89 as it invites shoppers to "sit back, relax, and enjoy restaurant-quality frozen drinks."
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And while you're enjoying those chill drinks, you can chill out in the Cobizi Hardtop Gazebo, which Walmart is selling for $709, a whopping $1,790 off the regular price.
The gazebo handle, by the way, comes from an 18th-century joke word combining “gaze” with the Latin suffix ebo, meaning “I shall" and if you buy this thing then you shall be the envy of all your neighbors...possibly.
Walmart recently released its first annual report on the state of Adaptive Retail, which the company describes as "an evolved form of retail that brings shopping to the customer in exactly the way they want and need."
"Retailers must predict shoppers’ needs, reduce decision-making and enable highly personal experiences," Suresh Kumar, Walmart’s global chief technology officer and chief development officer, said in a statement. "Future retail success depends on how well we anticipate and meet these evolving expectations."
Walmart said it surveyed more than 2,200 U.S. shoppers to gauge their current and future expectations.
"Adaptability, immediate accessibility, and custom 'do it for me' experiences will no longer be luxuries; they are absolute necessities," the company said.
Walmart CEO cites generative AI
Richard Kowalski, senior director of business intelligence at the Consumer Technology Association, who reviewed the study, said, “advancements in technologies like augmented reality and artificial intelligence are transforming how consumers engage with retailers.”
“Retailers that use technology to provide consumers with more personalized shopping journeys that seamlessly integrate into their lifestyles are the ones who will win in this Adaptive Retail era,” he said.
Related: Analysts adjust Walmart stock price target after shareholder meeting
Tech is playing a growing role in the retail sector. A report by the investment bank Cascadia Capital found that the retail technology market reached $19.1 billion in 2022 and is expected to achieve $47.8 billion by 2030.
"Retailers are leveraging AI-driven tools and virtual shopping technologies to transform the retail landscape, offering hyper-personalized, interactive, and immersive shopping experiences while simultaneously enhancing customer service and gaining insights into customer behavior," the study said.
CEO Doug McMillon told analysts in May that Walmart is "bringing new experiences to life like generative AI-driven product search that helps our customers shop more intuitively."
"The team continues to build and improve the platforms for marketplace and data that we're using across countries, and they're building and improving the operating system that enables us to create a more intelligent, flexible, and automated supply chain," he said.
During that first quarter, Walmart reported adjusted first-quarter earnings of 62 cents a share, up 26.5% from the year-ago period and ahead of Wall Street's forecast of 52 cents a share.
Revenue rose 6% to $161.5 billion and beat analysts' estimate of $159.5 billion.
Analyst: Walmart 'continues to leverage technology
U.S. same-store sales were up 3.8%, ahead of Wall Street's 3.2% forecast, while U.S. online sales rose 22% from a year earlier and comprised a record 20% of all domestic revenue.
Walmart is scheduled to report quarterly results next month, and several analysts have recently adjusted their price targets for the company.
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On July 25, BMO Capital raised Walmart's stock price target to $80 from $75 and kept an outperform rating on the shares.
The company's valuation can continue to move higher as it demonstrates the durability and consistency of its earnings algorithm in coming years following nearly a decade of investments to reach this margin inflection, the firm, citing a recent investor meeting with Walmart management.
Two days earlier, Tigress Financial analyst Ivan Feinseth raised the firm's price target on Walmart to $86 from $75 and kept a buy rating on the shares.
Walmart continues to leverage technology and increase operation and execution excellence to gain market share and penetrate higher-income households, said Feinseth. The firm's raised target represents a total return with dividends of over 23% from current levels.
On July 17, KeyBanc raised the firm's price target on Walmart to $82 from $75 and kept an overweight rating on the shares after holding two days of investor meetings with senior management and investor relations in Bentonville, AR.
The firm said it came away incrementally positive on the breadth of the company's initiatives.
Fundamentally, Walmart continues to gain share in grocery, e-commerce, and general merchandise as it expands its value proposition across income cohorts through its marketplace, delivery, and merchandising initiatives, KeyBanc said.
For these reasons, the firm said that Walmart remains one of its top ideas on short-, medium-, and long-term outlooks.
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