Channel Strategy

In: Business and Management

Submitted By Simorgh
Words 1167
Pages 5
Walmart is expanding its presence on the Internet and the usage of mobile apps in stores. This summer Walmart will place lockers in some of the stores and customers will be able to pick up their orders from pre-assigned lockers 24 hours a day (Banjo 2013).
The retail environment is changing; customers are using new technologies in every aspects of decision making from finding alternatives and comparing them to buying and using them. For almost every purchase customers start their shopping by an Internet search. They are also able to compare different retailers’ prices and check the availability in different retailers online. Technology has reduced the effort to find the cheapest and fastest options and by using smartphones you can do it everywhere even when you are standing by the item shelf in a brick and mortar shop and making decisions.
On the other hand regulation is changing for online retailers. Online retailers are losing the advantage of tax free sales. Amazon as the biggest online retailer will be charging for tax in some states which cover more than half of the U.S. market (Gera 2013). It may change Amazon’s ability to offer competitive prices.
For now as a physical retailer, Walmart offers a fast and lower price shopping experience to its customers. It has a broad assortment of merchandise and tries to be a one-stop shopping convenience. In 2011, Walmart added 8500 items or 11 percent in an average store (Walmart Broadening Product Assortment 2011). Obviously the selection is not the same in different areas but the lower price is guaranteed everywhere. As was mentioned before it is one of the most accessible retailers in the U.S. It also runs a campaign occasionally with emphasis on lower price and has an everyday lower price strategy.
Walmart has a unique access to the U.S. market. “Walmart is the world's third largest…...