Amid fierce competition with Amazon, Walmart announced Wednesday discounts for customers who order eligible items online and then pick them up at the store. In Jun 2016, Wal-Mart inked a deal with JD.com to sell its Chinese e-commerce business, Yihaodian in exchange for a 5.9% equity stake in the company. "So, our customers should share in those savings", Walmart President and e-Commerce CEO, Marc Lore, said. By making the customer travel to the store, Walmart can pass on the shipping cost savings to the customer, meaning these items will cost even less if you order online and pick them up at the store. Some curbside pickup customers do enter the store to buy additional items, Lore said, declining to provide specifics.
The discounts will begin next week on around 10,000 items that are only available online, the company said. Larger items will offer bigger discounts: a Vizio television that has a $1,698 price tag will offer a discount of $50.
It is learned a $50 discount can be offered to a 70-inch Vizio SmartCast 4K Ultra HDTV that is now being sold for $1,698.
The discounts - a few dollars on online-only items so far including auto seats, toys, and TVs - will be available starting April 19.
In the clearest example yet of the kind of tech and ethos Walmart (wmt) wanted to get its hands on when it bought Jet.com for $3 billion a year ago, the retail giant is offering discounts for online orders of certain items that are picked up in-store rather than delivered to the home.
The Walmart pickup discount appears to be the next iteration of that line of thinking.
Wal-Mart Stores, Inc. The discounts will be available on items that are only sold online, initially about 10,000 products, like bulky vehicle seats, that are expensive to ship to homes, said Marc Lore, chief executive of Wal-Mart's US e-commerce division.
Jet's software enables it to lower prices when customers add more items to their shopping carts.
We are doing a lot to enhance the Pickup experience to make it even simpler and more convenient for customers. Wal-Mart also expects to expand its online grocery pickup - Walmart Grocery - from the current 600 to roughly 1,200 stores in fiscal 2018. The change is expected to improve the retailer's competitive advantage by making its 4,700 USA stores more relevant to shoppers in a digital age, analysts said.
In introducing Pickup Discount, Walmart is not only reducing the hit to its profits by minimizing delivery costs, but also further setting itself apart from Amazon by connecting its purchase data across all channels, as well as using physical locations to its advantage as local distribution centers, says Sarah Engel, chief marketing officer at DynamicAction, a Redwood City, Calif. -based provider of analytics solutions. "This means we will continue to find ways to operate more efficiently and effectively". And, most importantly for Walmart, they're doing that spending with Walmart, not Amazon.