Over the last two years, rising interest rates, high inflation and uncertainty with the future has led consumers to be more cautious with their spending. To answer consumer concerns, both online and brick-and-mortar retailers have taken drastic steps to attract customers.
Walmart (WMT) is locked in a fierce competition with (TGT) and (AMZN) for retail sales. The competition has seen the competitors slash prices on thousands of items and upgrade their online platforms to attract more consumers.
Related: Walmart reveals latest deal to outdo Amazon
In May, Walmart said it reduced the prices on 7,000 items to encourage higher sales in its stores. Walgreens (WBA) and AmazonFresh followed Walmart's lead. Each separately said they, too, were lowering prices on thousands of items.
Target joined the fray this summer, saying it was lowering prices on 5,000 frequently shopped items. In June, the Minneapolis-based retailer also enhanced its online presence when it partnered with global commerce platform Shopify to offer a selection of its popular merchants and their products on Target Plus, its third-party digital marketplace.
Walmart has answered Target's move with a significant retail play against online competition as it expanded its e-commerce platform to introduce new lines and expand existing ones.
Walmart expands e-commerce platform
Walmart Marketplace, the giant retailer's e-commerce platform, on Aug. 27 made a huge statement to cosmetic retailers Ulta (ULTA) and Sephora as it introduced its new online Premium Beauty, offering over 20 new brands, including COSRX, T3 and Beachwaver, for skin care, hair care and hair tool products.
Related: Walmart makes unexpected change to how it will deliver items
The online retailer took aim at Amazon, EBay (EBAY) and (ETSY) , as it expanded upon its Walmart Restored platform for refurbished electronics and small appliances, which it launched in July 2022. The retailer launched Resold at Walmart, its first digital destination for cross-category and cross-condition pre-owned items from performance-managed sellers.
Resold at Walmart now taps 1,700 sellers with 5 million items offering a selection of goods including luxury fashion, electronics, collectibles, sporting goods and more.
More retail stories:
- Walmart makes major change to popular (pricey) service
- Target CEO addresses a growing problem in retail
- Target strategy prevails as Macy's spirals with opposing plan
Collectors seeking collectibles, such as action figures, dolls, trading cards, sports memorabilia, comic books, records and musical instruments, can take advantage of the Collectors Shop where sellers can enable preorders, including releases exclusive to Walmart. Eligible sellers can take advantage of 0% commission fees for collectibles through Oct. 31.
“We’re executing strategic priorities at Walmart that are helping us to become the customers’ first choice – every day, every season, for every item. Walmart Marketplace is a key component of that mission,” Tom Ward, executive vice president and chief eCommerce officer, Walmart U.S., said in a statement “We know the importance of personalized, seamless omnichannel experiences, and Walmart continues to advance its digital and fulfillment capabilities, including the new categories and features we announced today, that enhance the overall customer and seller experience on Walmart.com.”
Walmart's global e-commerce sales surpassed $100 billion in fiscal 2024 — about 16% of its total , and its U.S. e-commerce business has generated double-digit growth for six consecutive quarters. Walmart Marketplace has generated over 30% sales growth in each of the last four quarters.
Walmart Marketplace tire sellers this year also teamed with Walmart Auto Care Centers at 2,300 Walmart Supercenters, allowing customers to order eligible tires from online sellers to be shipped to a local Walmart Supercenter for installation. Over 4,600 Walmart stores nationwide accept Marketplace returns.
So, who's winning the fight so far? If you ask investors, it's Walmart — at least in 2024. Its shares are up nearly 47% this year. Amazon shares are up 17.5%. Target, which has been struggling with a lot of issues in recent years, is nonetheless up 7.9%.
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