Is Walmart Succeeding With Its Adaptive Retail Strategy?
Earlier this year, Walmart introduced a new concept it dubbed “adaptive retail” – an evolved form of retail that brings shopping to the customer in exactly the way they want and need. Now the company is offering a glimpse into how its strategy is paying off with its inaugural "State of Adaptive Retail" report.
With the help of Morning Consult, Walmart conducted a survey of more than 2,200 U.S. shoppers to gauge their current and future expectations of adaptive retail. According to the retailer, the study uncovered several overarching themes, including the fact that “retailers that can proactively predict individual customer needs, offer personalized suggestions and deliver at exactly the right moment are the ones who will succeed.”
Additionally, Walmart learned that adaptability, immediate accessibility and custom experiences have become absolute necessities for successful retail.
"We’re in a new era of retail defined by profoundly personal shopping experiences. Each shopper defines how, where and when they obtain goods, and context is key. The Why behind the purchase,” said Suresh Kumar, global chief technology officer and chief development officer at Walmart. “Retailers must predict shoppers’ needs, reduce decision-making and enable highly personal experiences. Future retail success depends on how well we anticipate and meet these evolving expectations."
According to the study findings, more than half of shoppers want a tool that recommends the best products for them, while nearly half want to receive suggested items based on their individual preferences. Meanwhile, 42% of Gen Z shoppers and 44% of parents are interested in receiving any regularly purchased items through an auto-delivery or subscription service.
“Nearly half of Americans wish for the ability to purchase an item within seconds of seeing it,” the study found. “They want the immediate satisfaction of seeing a coveted item while fully immersed in other activities – such as using social media, watching TV and gaming – and the ability to buy at the spot of inspiration, without the friction of moving to a different channel.”
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The study also spells out the fact that as consumers become more comfortable with tech-enabled choices, they will become more channel agnostic. In fact, early tech adopters and Gen Z respondents are already shopping relatively equally across all channels for general merchandise.
“Advancements in technologies like augmented reality and artificial intelligence are transforming how consumers engage with retailers,” said Richard Kowalski, senior director, business intelligence at Consumer Technology Association, who reviewed the report before publication. “The latest research from Walmart and Morning Consults shows that consumers have high expectations for how technology will improve their shopping experiences in the future. Retailers that use technology to provide consumers with more personalized shopping journeys that seamlessly integrate into their lifestyles are the ones who will win in this Adaptive Retail era.”
For its part, Walmart announced in June that it plans to introduce digital shelf labels at 2,300 of its stores over the next two years. The labels, developed by Vusion Group, will allow the retailer to update prices at the shelf using a mobile app. The retailer also recently expanded its in-home delivery service to five additional markets across the United States.
Each week, approximately 255 million customers and members visit Walmart's more than 10,500 stores and numerous e-commerce websites in 19 countries. With fiscal year 2024 revenue of $648 billion, the retailer employs approximately 2.1 million associates worldwide. Bentonville, Ark.-based Walmart U.S. is No. 1 on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. PG also named Walmart one of its Retailers of the Century.
