Walmart Closing Key Innovation Hub
Walmart plans to close a key innovation hub, according to a staff memo from CFO John David Rainey viewed by The Wall Street Journal.
Store Nº8 was formed in 2017 as part of Walmart’s larger innovation mission and is named after the Arkansas store where Walmart founder Sam Walton tested new ideas. Although it was named after a store, it was not a physical location. Store Nº8 team members were located in Hoboken, N.J.; Bentonville, Ark.; and Los Angeles.
“We’ve graduated capabilities from this operating approach that are now fully embedded in our organization,” wrote Rainey.
Some of the ideas born from the business unit that have been adopted by the wider company include text and voice shopping, and InHome Delivery.
“The responsibility to shape the future of retail is now shared by all segments,” continued Rainey.
Walmart's vision for the future of retail was shared at its keynote address at the recent CES trade show, in Las Vegas. CEO Doug McMillon made clear that Walmart, which over the past few years has invested heavily in tech initiatives, intends to continue founder Sam Walton’s servant leadership legacy of “people first,” even in the face of relentless transformation – and competition – in the industry.
His executive team also debuted the company’s adaptive retail strategy. “It’s retail that is not only e-commerce or in-store, but a single, unified retail experience that seamlessly blends the best aspects of all channels,” said Walmart's chief technologist, Suresh Kumar.
Walmart has seen recent success in its digital operations. It celebrated a solid third quarter that saw its e-commerce rising 15% on a global basis. The company’s U.S. sales experienced a 24% spike attributed to strength in pickup and delivery.
The retailer will release its fourth-quarter earnings on Feb. 20.
Each week, about 240 million customers and members visit Walmart’s approximately 10,500 stores and numerous e-commerce websites in 19 countries. The Bentonville, Ark.-based company employs approximately 2.1 million associates worldwide. Walmart U.S. is No. 1 on Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named Walmart one of its Retailers of the Century.
