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US - Walmart Strategy

The document discusses Walmart launching its Walmart Plus subscription service. Walmart Plus offers delivery and pickup options for shopping items to make purchasing more convenient and safe during the pandemic. The service provides free same-day delivery for over 160,000 items from 2,700 locations and pickup tower options. The summary evaluates the launch and customer strategy of Walmart Plus.

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Bagasrafi Ilham
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0% found this document useful (0 votes)
365 views10 pages

US - Walmart Strategy

The document discusses Walmart launching its Walmart Plus subscription service. Walmart Plus offers delivery and pickup options for shopping items to make purchasing more convenient and safe during the pandemic. The service provides free same-day delivery for over 160,000 items from 2,700 locations and pickup tower options. The summary evaluates the launch and customer strategy of Walmart Plus.

Uploaded by

Bagasrafi Ilham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

World’s biggest retailer launches Walmart

Plus and customers have their say


Art T. Weinstein, Kristen Anti and Esteban Ochoa

If you don’t listen to your customers, someone else will. Sam Walton Art T. Weinstein,
Kristen Anti and
Walmart is the largest traditional retailer worldwide. The Covid-19 pandemic led to a major Esteban Ochoa are all
shift to online buying, which forced Walmart to rethink its marketing approach to retain based at the Department of
customers. A key part of the revised strategy was the promotion of a new online delivery Marketing, Nova
service known as Walmart Plus. Walmart was able to thrive in the global crisis by delivering Southeastern University,
superior customer value. This case study evaluates the launch of the new business venture Fort Lauderdale, Florida,
and the company’s overall customer value strategy. These insights are useful to retailers, USA.
service organizations and small businesses that need to quickly adapt to change in
turbulent markets.
Walmart Inc., formerly known as Wal-Mart Stores, Inc., was founded by Sam Walton in 1962.
The first store opened in Rogers, AR (USA). Today, there are more than 11,500 Walmart
stores operating in 27 countries. Sam Walton had one simple customer value-based goal:
help people save money so they could live better. Sixty years later, the chain remains true to
that mission by offering low prices and a huge selection of products. Walmart’s core values
are based on customer respect and service, which cements store loyalty and gives Walmart
a strong edge over its retail competitors.
Walmart is the main source for groceries, household items, clothing and more, for hundreds
of millions of consumers. Based on a 2020 survey of consumers who purchase from
discounted chains, 75% of respondents have shopped at Walmart and 66% of respondents
regularly buy food and products from Walmart. In 2021, Walmart averaged about 240
million customer visits per week (Statista, 2021).
How does Walmart manage to gain and retain such a loyal following? Although Walmart
does not have an official loyalty program, strategies such as cashback serve as loyalty
builders. Offers of 1%–3% cashback, depending on where the purchases were made, or
based on the type of purchase made motivate consumers to continue to patronize Walmart.
Cashback programs allow customers to save money and make those funds available for
other necessities, such as paying bills. Further, Walmart participates in the Fetch Rewards
program, which allows consumers to earn points for scanning receipts and later redeem
them for rewards.
Innovations like automated assistants, convenient handheld apps and virtual reality were
implemented across the chain to enhance the shopping experience. In addition to online
shopping, the company also initiated a new delivery and pickup service without the need to
leave one’s vehicle. Walmart Pickup Towers, 16-ft.-tall high-tech vending machines, were
installed in 1,211 stores to create a fun and fast way to shop. The Check Out With Me
service allows associates to check out customers from anywhere on the sales floor, and the
Dot Store App helps customers shopping at Walmart.com find out-of-stock items.

DOI 10.1108/JBS-07-2021-0133 VOL. 43 NO. 6 2022, pp. 381-390, © Emerald Publishing Limited, ISSN 0275-6668 j JOURNAL OF BUSINESS STRATEGY j PAGE 381
Over the past few years, corporations have added services that strategically place
customers at the center stage. During the Covid-19 pandemic, this need was escalated to
an even higher degree, but especially for businesses that provided essential consumer
goods and services. For Walmart and other grocery stores, this meant that they needed to
find a way to make shopping easier and safer. As a result, Walmart launched Walmart Plus
(also known as Walmartþ). Walmart Plus was established to deliver shopping items directly
to the consumer and to offer easy store pickup options. Walmart Plus currently offers free,
same-day delivery of over 160,000 items, including groceries from 2,700 Walmart locations.
At this time, there are no plans for expanding this program internationally. Walmart Plus also
offers the popular purchase online and pickup in-store feature, with handy self-serve pickup
towers in stores. Another convenience feature is its Walmart Pay app, which allows
customers to purchase items with their phones, making it easy to target smartphone-
addicted consumers.

Customer value analysis


The customer value funnel captures and summarizes the salient attributes of customer
value concepts in action (Weinstein, 2019). Organizations must effectively deal with a set of
global business issues as well as customer-specific concerns to maximize business
performance. Viewing the four levels of the model – business community (macro and micro
environments), market, organization and customers – through a broad to narrow lens
ultimately impacts the performance of a business unit.

Level 1. Macroenvironment
Society: Walmart’s new subscription-based program, Walmart Plus, is aimed at saving
consumers’ time and money. By signing up for the program, consumers have access to
special offers and free next-day and two-day shipping, with no minimum purchase
requirements. Walmart Plus has now reached more than 4,700 stores, including 2,700
stores that offer delivery as fast as the same day (Walmart Introduces Walmartþ, 2020).
Demographics: According to Business Insider, the average consumer shopping at Walmart
is a 46-year-old white woman with an annual household income of US$76,000 (Hanbury,
2020). With Walmart Plus launching in September 2020, it already accounts for about 14%
of Walmart.com shoppers (Monteros, 2021). Walmart’s typical customer values affordable
pricing. It is interesting to note that the average consumer’s income greatly exceeds the
median household income. As Walmart Plus continues to grow, the average consumer
income is also expected to increase. This is because of Walmart tapping into new middle-
and upper-middle-class market segments. The subscription-based program is geared
toward consumers who have busy schedules and need their groceries delivered quickly. By
providing a seamless option on mobile devices, Walmart Plus will continue to grow.
Economic: Walmart Plus is well positioned to offer consumers significant savings. They offer
the service at just US$12.95 monthly or US$98 yearly, which is comparable to Amazon
Prime. Walmart Plus has exclusive perks. It is estimated that this service can save
customers hundreds of dollars annually on groceries and gasoline.
Physical: Given the enormous number of Walmart and Walmart Plus shoppers, operations
need to be streamlined to meet consumer demand. It is imperative that deliveries are on
time and inventory is in stock at their selected stores to prevent customer defections.
Walmart Plus requires consumers to choose locations closest to them when they are
ordering off the app; this allows the local store to package their items and deliver them to
homes. When customers are paying an annual fee and getting additional perks, they are
more likely to stick with that store (Morgan, 2021). This means consumers are now not only
becoming more loyal to Walmart by using the new program but are becoming more loyal to
the individual stores.

PAGE 382 j JOURNAL OF BUSINESS STRATEGY j VOL. 43 NO. 6 2022


Political: Walmart must follow all government regulations to continue operations. Its
corporate website lists its own policies as well as the government policies they follow.
Additionally, Walmart must make sure it is in line with the Food and Drug Administration
(FDA) to ensure they are offering groceries that provide the safest experience for their
consumers. On a localized level, Walmart must comply with legislation by state, county and
city agencies.
Technology: In a typical retail business model, the technology occurs at the end of the
consumer experience, at checkout. However, with Walmart Plus redesigning the way
consumers conduct their grocery shopping, technology plays a vital role from the moment
they open the app to the time they receive their items. By ordering products on their mobile
devices, consumers digitally browse the aisles and select items that they want delivered the
same day or the next day and track when they will receive them. Walmart’s new model
emphasizes a shift toward becoming more of a technology company. This evolution has
proven successful as Walmart Plus created 7.4 million members just five months after the
launch date (Monteros, 2021).

Level 2. Microenvironment
Collaboration: Given its huge resources, Walmart can offer goods and services without the
need for many collaborations. Unlike Amazon, which acquired Whole Foods to be able to
provide fast grocery deliveries, Walmart works with local and global suppliers to meet
consumer demands and provide in-stock inventory throughout the year. While there are no
strategic partnerships for the core products, Walmart carefully selects suppliers by having
them meet specified criteria and then complete an application. Collaborators are in place to
ensure Walmart is upholding a healthy work environment. Some of the varied Walmart
collaborations include the Alliance for Bangladesh Worker Safety, the Coalition of
Immokalee Workers, the International Labor Organization and the Ethical Trading Initiative
(Walmart - Collaboration, 2021).
Competition: The head-to-head direct competitor of Walmart Plus is Amazon, as they both
have a similar business model of being a subscription-based, fast-delivering service.
Amazon calls its program Amazon Prime and with a discounted annual fee of US$119 (or
US$13 per month), consumers get same- and two-day delivery on their grocery items.
Amazon has a 42% market share in US e-commerce retail sales, followed by Walmart with
8%, and eBay, Apple and Home Depot all at less than 5%. Walmart has recently become
the market leader in online grocery transactions (30%), closely followed by Amazon (28%).
Target (11%) and other non-grocers (16%) and other grocers (15%) capture the remaining
40% of the online grocery business (Herrera and Calderon, 2021).
Walmart Plus offers a monthly or yearly fee, which is US$21 less than Amazon Prime. While
both offer discounted grocery items, with speedy deliveries, they do provide different
membership perks. Amazon Prime offers the advantage of streaming services, whereas
Walmart has no plans of entering the entertainment arena. One advantage that Walmart
Plus has over Amazon Prime is that it can provide consumers with gas discounts of US$.05
per gallon.
In addition to Amazon, Walmart Plus faces regional and local grocery competitors. For
example, in South Florida, the Walmart Plus main competitor is Publix, the overwhelming
statewide leader, as well as Aldi, BJ Wholesale Club, Costco, Fresh Market, Sedano’s,
Trader Joes, Whole Foods and others.
Suppliers: To meet the demands of its consumer base, Walmart must anticipate the amount
of inventory needed at every store. With over 2,800 suppliers worldwide, Walmart ensures
each supplier will carry out its responsibilities by filling out detailed applications that
address product specifications, insurance requirements, audits and certifications and other
relationship expectations. These measures ensure that suppliers are held to prescribed

VOL. 43 NO. 6 2022 j JOURNAL OF BUSINESS STRATEGY j PAGE 383


legal and ethical standards. Not only does each supplier has to meet deadlines, but each
must also do so while providing the best price to Walmart. This then allows Walmart Plus to
offer the best value to consumers while producing profits for the company.
Key suppliers include Plug Power Inc., assisting in optimizing operational costs, reducing
emissions and refined technology. Funai Electric Co. provides the majority of audiovisual
equipment to Walmart. CCA Industries specializes in beauty and lifestyle products for
Walmart’s distribution. Green Dot Corporation created a program for Walmart consumers
called MoneyCard to assist shoppers with payments. Lastly, Primo Water Corporation
provides self-service water products and is one of the largest distributors in water
dispensers (Best, 2021).
Regulators: As a retailer, Walmart must ensure that consumers are receiving safe products
while also providing a safe workplace for employees. When referring to goods and services,
Walmart must be in line with its advertising and make sure that it is not deceiving
consumers. Additionally, it cannot price gouge items. During Covid-19, some sellers priced
hand sanitizers far beyond what they would normally cost. However, Walmart would be in
violation if it were to do the same; therefore, it set fair prices and acted under regulations.
Regarding the work environment, Walmart must follow the guidelines of the Occupational
Safety and Health Administration (OSHA).

Level 3. Organization
Stakeholders: Walmart’s stakeholders include investors, customers, employees and
suppliers. Without these four parties, Walmart would not be the largest retailer today.
Investors allow Walmart to take on new expenditures, such as the launch of Walmart Plus.
Their main objective is to maximize profits so earnings per share may increase. Secondarily,
it is concerned about corporate social responsibility. Walmart can satisfy investors by
attracting and retaining a large number of satisfied consumers. Walmart focuses on
providing the lowest price point to shoppers and emphasizes lifetime relationships rather
than individual transactions.
Customers, the main drivers of revenue, appreciate the massive selection and affordable
prices and seek a great shopping experience. Walmart provides this through Walmart Plus.
The service offers low price points and with the ease of doing grocery shopping on a mobile
device, and same-day delivery. For operations to run smoothly, Walmart is dependent on its
employees to carry out everyday tasks and provide the best consumer experiences. The
company highly values its employees by providing job security, career opportunities and
acceptable wages for drivers and in-store personnel. Suppliers are also important for
meeting the demands of consumers, and Walmart Plus depends on suppliers to provide
enough inventory at each store so that consumers can use their subscription benefits and
avoid cancelations.
Business culture: Walmart follows four main tenets to help build a healthy working
environment: service to customers, respect for the individual, striving for excellence and
acting with integrity (Walmart/Careers, 2021). Service to customers consists of being
attentive to consumers and aiming to provide good customer service. Respect for the
individual applies more to team building, and everyone must be treated with respect and
feel heard when voicing an issue. By striving for excellence, it sets goals for employees, so
they continue to advance in their jobs and take responsibility for their actions. Acting with
integrity asks all employees to do what is right and to be transparent with one another.
These four factors are the business culture’s foundation and the reason why Walmart
continues to be the leading retailer.
Organizational structure: Walmart follows a hierarchical organizational structure. This is
evidenced in the stores by managers and retail associates. Every employee reports to a
supervisor, who is then given a task to complete. This chain of command is in place every

PAGE 384 j JOURNAL OF BUSINESS STRATEGY j VOL. 43 NO. 6 2022


day to help carry out all tasks. Additionally, this can also be seen in top-level management,
where the board of directors discusses store policies and implements changes to be more
efficient. These policy changes are then forwarded to management to execute at the store
level.
Strategies: Walmart, the largest retailer in the USA and the world, has now shifted to a
mobile business model. It is taking on competitors directly by providing a more affordable
subscription plan and perks that are not offered by Amazon such as gas discounts. Rather
than the traditional approach of shopping in stores, consumers now can do their grocery
shopping in the comfort of their homes. They can schedule their groceries to be delivered
the same day or within two days. This method of providing an easy and unique way of
shopping leads to consumer loyalty and has helped gain market share in the highly
competitive grocery sector.
Value providers: Walmart Plus’s biggest value adders are their employees. When
employees exceed the expectations of consumers, it leads to brand loyalty and translates
to positive shopping experiences. Employees must provide excellent customer service to
retain customers. While gathering groceries to deliver to consumers, they must work quickly
and handle products with care. Behind the scenes, employees work diligently to make sure
the mobile app is functioning properly. If a glitch occurs, employees must resolve mobile
issues fast or risk losing sales.

Level 4. Customer behavior


After reading many customer reviews and blog posts about the Walmart Plus service, we
have concluded that consumer behavior depends on what individuals value (see Figure 1
for some comments by customers). This can include cost, quality, value, safety or speed.
During the pandemic, consumers have considered safety first, even when going out to
purchase groceries. Doorstep deliveries reduced exposure to Covid-19. Another great
advantage of the Walmart Plus delivery program is saving on time and gas money by
making fewer trips to the grocery store.
Walmart Plus members say that they feel safe even when they decide to shop in-store
because they can scan items with their smartphones, minimizing their contact with others at
the register. With this feature, Walmart Plus members also decrease the amount of time they
have to spend indoors with a large group of people, because the ability to scan items with
their smartphones also increases checkout speed. Overall, the Walmart Plus program is
valued the most by customers who do most of their grocery and household shopping at
Walmart retail chains. The majority of the positive feedback from subscribers of the Walmart
Plus program is structured around the value that they receive from the service. Almost all of
the positive reviewers mention that the program gives them multiple options to save money
and allows them to do grocery store shopping quickly and safely (Brown, 2020).
Many Walmart Plus consumers value the program and are appreciative of Walmart’s
leadership. Walmart Plus is not a preferred service by some customers whose main
consideration is cost. Some consumers think that the cost of the service is too high for what is
offered by the program. Walmart Plus does includes a gas discount of US$.05 per gallon at
Walmart and Murphy stations, which is appreciated by customers given rising fuel prices. In
comparison, Amazon Prime’s annual membership includes television, movie and music
streaming services. Amazon members also save when shopping at Whole Foods Market.
Prime members receive 10% off on hundreds of sale items and products throughout the store
and receive ongoing weekly deep discounts on select best-selling items.
Some Walmart Plus members have canceled their service because the cost is perceived as
too high, or there is a US$35 minimum required for free shipping. Another negative remark
from Walmart Plus subscribers was that the service would not allow coupons to be
accepted through Scan and Go, leaving shoppers frustrated. Consumers do have the

VOL. 43 NO. 6 2022 j JOURNAL OF BUSINESS STRATEGY j PAGE 385


Figure 1 Walmart Plus shopper comments 

“I love the way they provide so many times for pick up and that it is a
touchless pick-up. They let me pay online with EBT and if I have a
problem, they get it fixed so quickly. The pricing is good, and the
quality is good.”
Susan - Rothbury, MI

“I love Walmart's grocery anytime delivery service (12.00/mo). We're


a couple in our 80s, and between winter weather, heavy traffic, and
the pandemic, we rely heavily on this service. Excellent service and
great drivers!”
Judith - Topeka, KS

“I miss choosing my own bacon, fruits, etc. I am grateful to the


considerate Walmart employees that shop for my online order. They
have been considerate and good shoppers. Never had a broken egg,
their choices have been great. The employees that bring out my
groceries to my car wear their covid19 masks, pack my car with
consideration and always polite. I go in the mornings because the
weather is hot in Tampa, FL even at 10 am. They're out in the sun,
lifting grocery bags wearing a mask. I want them to know how much I
appreciate all of them, every week. Thank you. Laurel **. PS BETTER
than Instacart any day.”
Laurel - Tampa, FL

“The store gives me the unexpected in the guarantee of all types of


products at savings, I love my stores. They know the customer need,
as employees that care deeply, and maintain the stock of products are

dependent, and unexpected with new products, that make life, much
more improved.”
Doris - San Diego, CA

* The above comments are a small sample of some verified five-star reviews
that were posted from June 2020 to February 2021. (Consumer Affairs,
2021).

option, however, to waive the minimum fee by selecting curbside pickup. This allows them
not to spend any additional time in the store and have the items ready by arrival time.
Consumers carefully evaluate the quality of the core products, the freshness of the produce,
the speed and reliability of the delivery service and the trust they place in their personal
shopper. In the case of deliveries and store pickups, customer satisfaction is directly linked
to how well the personal shopper fulfills orders. When considering product and service
quality, many of the customers noted that they did not trust their shoppers’ judgment in the
freshness of the products and produce picked and they did not trust shoppers to research
each of the items offered on the shelf and double-check product expiration dates. Many
Walmart Plus subscribers expressed concern over substitutions of sold-out products.
Based on delivery and grocery pickup service reviews, almost all Walmart Plus competitors,
including Amazon Prime, face the same issues regarding the quality of the product picked

PAGE 386 j JOURNAL OF BUSINESS STRATEGY j VOL. 43 NO. 6 2022


and product substitutions. This can be an area of differentiation for Walmart to address and
make improvements to beat competitors. Consumers would be willing to pay a little more for
the Walmart Plus program if the quality of the products and produce were deemed superior
to their rivals.
According to a recent Consumer Pulse Survey, a multi-phased, worldwide study of the
impact of Covid-19 on customer attitude and behavior, which surveyed 27,000 respondents
online in 22 countries, 80% of US consumers are taking actions seeking value when they
shop. The most popular action (52%) is to shop at stores with everyday low prices. This
survey strongly emphasizes that value-seeking consumers (70%) far surpass quality-
seeking consumers (13%) in the USA. The stunning result of the survey was that Walmart
continues to dominate competitor stores when it comes to value. As Wilson (2021) notes, a
surprising 33% of respondents mentioned Walmart first when asked which stores provide
the best value, followed by Kroger and Aldi (both tied at 10%) and Amazon (6%).

Research insights – a pilot test for the Walmart Plus concept


Considering Walmart’s mission, the question becomes: is subscribing to Walmart Plus a
good value? An exploratory survey was developed that focused on the consumer shopping
style with respect to grocery purchasing, preferred retail stores and general awareness of
the Walmart Plus initiative. A convenience sample was used within the South Florida market.
An email or text QR code survey was sent to colleagues, family members and friends.
Seventy-four respondents participated in the exploratory research. Seventy (70)
respondents (95% of the sample) live within the tri-county area of Broward County, Miami-
Dade and Palm Beach counties. Only 5% of the respondents were located outside the state
of Florida.
Nearly half of the respondents (49%) said that Publix Super Markets was their favorite
grocery store. This number is comparable to statewide market share data as Publix is the
dominant grocery chain in Florida accounting for more than 47% of market share in all
geographic areas. Walmart was the second most popular grocery chain mentioned at 26%.
This is a little higher than Florida market share trends as Walmart’s market share was no
higher than 20% in any of the three regions – Central Florida, North Florida and South
Florida. About 25% of the respondents preferred another grocery chain or had no
preference. Consistent with statewide market data, no other supermarket was preferred by
more than 10% of the sample (The Packer, 2020).
Only 27% of the respondents were aware of the Walmart Plus initiative. Surprisingly, only
19% were willing to try Walmart Plus for free. The population of respondents that were most
likely to try the program were minorities (79% Hispanic and 21% African Americans).
Regarding the shopping style of respondents, 41% used some type of delivery service (with
70% using the service more than twice a week), and 32% used pickup services (with 58%
ordering more than twice a week). A majority of respondents, 70%, spent US$75 or more on
groceries per week. Table 1 (demographics) and Table 2 (grocery shopping habits,
preferences and awareness) summarize the survey results of the South Florida pilot test.

Strategic implications
Improve communications
The message behind Walmart Plus is not being conveyed effectively by the Walmart
marketing team. Extensive market research throughout the USA is imperative for the
success and mass implementation of the Walmart Plus program. The local survey
conducted showcased that in the South Florida region (n = 70), only 27% surveyed were
aware of the existence of Walmart Plus. For a retail giant like Walmart, just over a quarter of

VOL. 43 NO. 6 2022 j JOURNAL OF BUSINESS STRATEGY j PAGE 387


Table 1 Demographic profile
Age distribution < 30: 28% 30–49: 50% 50þ: 22%

Household size One 8% Two 34% Three 31% Four or more 27%
Children < 18 Yes 69 No 31
Ethnicity Hispanic: 64 Caucasian: 25 African-American: 10 Asian-American: 1
Household income < US$25,000: 8 US$25,000–US$49,999: 15 US$50,000–US$99,999: US$100,000þ: 41
36
Racially mixed household Yes 15 No 85
Geographic South Florida 95 Non-Florida residents 5

Table 2 Grocery shopping habits, preferences and awareness


Amount spent weekly US$75 þ 70% < US$75 30%

Preferred supermarket Publix 49 Walmart 26 Other 25


Delivery service usage Once a week 30 Two or more 70
Preferred delivery service Instacart 26 Amazon 23 Walmartþ 8 Other/no preference 43
Store visits, curbside pickup Once a week 42 Two or more 58
Walmartþ awareness Aware 27 Unaware 73
Willing to try Walmartþ Yes 19% No 81%

the sample is a poor awareness level. To increase the awareness of the Walmart Plus
membership, the company needs to:

1. revise the current communication strategy and clearly identify the strengths and
weaknesses of the approach;
2. conduct market research within Walmart stores throughout the country on:
䊏 Walmart Plus awareness for Walmart shoppers;
䊏 Walmart Plus usage (those who already have the subscriptions); and
䊏 Walmart Plus likely tryers.
3. create several ideal consumer profiles (personas) to test in future research initiatives
based on current users. Split-half test advertisements in selected major metropolitan
areas, small metropolitan areas and semi-rural areas can be useful in this endeavor;
and
4. increase social media presence through local ambassadors and category influencers.

Use geo-segmentation
With a population of almost 330 million people, the USA has 60% Caucasian, 18.5%
Hispanic and 13.4% African-American (United States Census Bureau, 2020). Research
published by Hanbury (2020) reveals that 18% of Walmart’s client base is Hispanic, and
about 15% is African-American. Our study found that only 14 of the 74 households (19%)
surveyed were willing to try Walmart Plus. Further, 79% of potential buyers (n = 11) were
Hispanics; the remainder (n = 3, 21%) were African-American.
Walmart can emphasize geo-segmenting of minorities in large urban areas to try the new
service/product. Minority majority markets are located in counties such as Cook (Chicago),
Dallas, Los Angeles, Miami-Dade, Philadelphia and San Diego. In the USA, Walmart has a
potential minority client base of 105 million people, out of which they currently serve
approximately 35 million people (33%). Assuming the survey ratios remain constant, there is

PAGE 388 j JOURNAL OF BUSINESS STRATEGY j VOL. 43 NO. 6 2022


an opportunity for expanding Walmart Plus membership by 19%. Of the 70 million minorities
that are non-customers, approximately 13 million subscriptions can be added, representing
US$168m added revenue monthly or US$1.2bn added revenue for the first year, if bought
annually rather than via monthly installments. In addition, millions of other non-minority
customers will be reached and can be enticed to try the service via the spill-over effect from
the promotional campaigns.

Integrate Walmart Plus with Sam’s Club


Allowing Walmart Plus consumers to access Sam’s Club platform virtually would truly be
value-adding to consumers. The only thing Walmart must do is add the current platform
Sam’s Club Wholesale to its business model. This initiative will give Walmart an edge for
households that are also business owners. Buying in bulk reduces costs and increases
savings, a strategy that competitors cannot match. To a small degree, this strategy might
cannibalize profits from Walmart directly but it will expand the sales opportunities of Sam’s
Club, owned by Walmart. This allows consumers to take advantage of two companies for
the price of one.

Enhance impact by going organic


Walmart is either loved or hated. Some individuals refuse to purchase anything associated
with Walmart. Others would go nowhere else. Price sensitivity plays a major role in
Walmart’s customer attitudes and loyalty. Walmart has the resources and logistical
infrastructure to create a high-end, health-driven grocery store model with sustainable local
resources. Introducing stores in areas such as Miami, Los Angeles and Colorado where
health-consciousness dominates can spark a change in customer perceptions. The new
store model will have higher margins and target a different set of consumers. Instead of
having to spend money in constructing new stores from scratch, Walmart can adapt the
garden area of the store into a Health Mart Plus to establish a direct association between
Walmart and the new venture. To further show the connection of the new store to Walmart,
Walmart Plus members can take advantage of the new Health Mart Plus side of the
supermarket with deep discounted offers. Amazon has similar deals for Prime members in
its Whole Foods stores.

Concluding remarks
Overall, the Walmart Plus concept is innovative, interesting and beneficial to shoppers. As Keywords:
of now, it has not met market and corporate expectations, so it needs to be enhanced and Marketing strategy,
upgraded. Walmart must do a better job of relaying information to their existing shoppers E-commerce,
Customer value,
and potential consumers to maximize the effectiveness of this new business. Great ideas
Online shopping,
without sufficient market awareness and adaptation to change are doomed to fail. Given Walmart,
Walmart’s massive resources and marketing prowess, we believe that the company has an Retail management,
excellent opportunity to succeed with Walmart Plus in the USA and abroad. Grocery industry

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%20many,consists%20of%202%2C800%20suppliers%20worldwide
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Corresponding author
Art T. Weinstein can be contacted at: art@nova.edu

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