  {"id":6298,"date":"2018-02-01T01:36:56","date_gmt":"2018-02-01T06:36:56","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/walmart-blurring-the-lines-between-digital-and-physical\/"},"modified":"2018-02-01T17:15:42","modified_gmt":"2018-02-01T22:15:42","slug":"walmart-blurring-the-lines-between-digital-and-physical","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/walmart-blurring-the-lines-between-digital-and-physical\/","title":{"rendered":"Walmart \u2013 Blurring the lines between digital and physical"},"content":{"rendered":"<p>Walmart&#8217;s success with digital investments over the last few years has resulted in strong growth of in-store and online sales. During the last quarter, Walmart\u2019s US ecommerce sales grew 50% year-on-year and Walmart management expects a 40% increase in US ecommerce sales over the next fiscal year. US in-store sales also had a solid growth of 2.7% during the last quarter. As a result, the stock price has increased 60% over the last year.<\/p>\n<p><strong><em><u>Mobile app features<\/u><\/em><\/strong><\/p>\n<p>Walmart continues to add new, convenient features to its mobile app, with the goals of saving the consumers\u2019 time and money, and improving the shopping experience. Current popular features include its own digital payment platform, Walmart Pay, which aims to speed up the checkout process, and a popular price matching tool, Savings Catcher, that encourages consumers to trust the prices at Walmart. One recent upgrade is allowing shoppers to quickly order refills and manage their prescriptions within the app, and setting up \u201cexpress lanes\u201d in stores for customers who have placed orders via the app. For the pharmacy service, the upgrade helps support a high-traffic part of the business and makes the app stickier to more customers.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/savings-catcher.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6289\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/savings-catcher-300x262.png\" alt=\"\" width=\"354\" height=\"309\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/savings-catcher-300x262.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/savings-catcher-600x525.png 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/savings-catcher.png 607w\" sizes=\"auto, (max-width: 354px) 100vw, 354px\" \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/a><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pharmacy.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6300\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pharmacy-297x300.jpg\" alt=\"\" width=\"305\" height=\"308\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pharmacy-297x300.jpg 297w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pharmacy-150x150.jpg 150w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pharmacy-594x600.jpg 594w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pharmacy.jpg 713w\" sizes=\"auto, (max-width: 305px) 100vw, 305px\" \/><\/a><\/p>\n<p><strong><em><u>In-store experience<\/u><\/em><\/strong><\/p>\n<p>However, Walmart knows its advantage is its large physical store footprint &#8212; 90% of Americans live within 10 miles of a Walmart store. Thus, Walmart has also leveraged technology to improve the in-store customer experience in many ways. \u00a0Here are some innovations that the company is testing and rolling out to more stores.<\/p>\n<p><strong><em>Various Store Pickup Options<\/em><\/strong><\/p>\n<p>Walmart allows customers to order online and pick up in stores, and the company continues to test various options for improving the pick up experience. Below is a Pickup Tower where customers can scan a barcode sent to their smartphone and quickly pick up their online order.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pick-up-tower.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6290\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pick-up-tower-300x168.jpg\" alt=\"\" width=\"377\" height=\"211\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pick-up-tower-300x168.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pick-up-tower-600x336.jpg 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/pick-up-tower.jpg 700w\" sizes=\"auto, (max-width: 377px) 100vw, 377px\" \/><\/a><\/p>\n<p><strong><em>Scan and Go<\/em><\/strong><\/p>\n<p>Walmart is rolling out the Scan and Go technology to more stores after a successful test. This technology allows customers to avoid the negative experience of long checkout lines. Customers can use their smartphone or a Walmart-provided handheld device to scan items as they shop, pay directly on the device, and exit the store through an express lane where they show their receipt to a Walmart associate.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/scan-and-go.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6291\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/scan-and-go-300x200.jpg\" alt=\"\" width=\"382\" height=\"254\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/scan-and-go-300x200.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/scan-and-go.jpg 600w\" sizes=\"auto, (max-width: 382px) 100vw, 382px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Appointment setting and ordering kiosks<\/strong><\/p>\n<p>Some stores are experimenting with a kiosk system where customers can place a deli order, go do other shopping, and come back to quickly pick it up. The company sees potential to expand this service to other areas such as pharmacy, auto care center or anywhere that requires ordering or appointments.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/kiosk.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6292\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/kiosk-300x200.jpg\" alt=\"\" width=\"383\" height=\"255\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/kiosk-300x200.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/kiosk-600x399.jpg 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/kiosk.jpg 603w\" sizes=\"auto, (max-width: 383px) 100vw, 383px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong><u>Other operating efficiencies<\/u><\/strong><\/p>\n<p><strong><em>Strengthening data analytics<\/em><\/strong><\/p>\n<p>Walmart is also innovating on the back-end operations and in process of building the world\u2019s largest private cloud, with the capability to process 2.5 petabytes of data per hour. At its HQ, the company created the \u201cData Caf\u00e9\u201d, a high-tech analytics hub staffed with analytics experts that others teams can consult. Data processing time has reduced from weeks to minutes and allows teams to more quickly generate insights and respond to the market. Through this investment, Walmart strengthens its data analytics capabilities and captures value by becoming a more nimble player with stronger understanding of its business, and ultimately leading to higher sales and operating efficiencies.<\/p>\n<p><strong><em>Improving food safety with blockchain <\/em><\/strong><\/p>\n<p>In 2017, Walmart launched a pilot with IBM and China\u2019s Tsinghua University to use blockchain to digitally trace how pork products in China move from farm to table. In a similar test done with tracing mango supplies in the US, Walmart found that utilizing blockchain to trace the food cut the time from days or weeks to just two seconds. (The technology comes from an open source project based out of the Linux Foundation).<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/blockchain-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6294\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/blockchain-1-300x155.png\" alt=\"\" width=\"494\" height=\"255\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/blockchain-1-300x155.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/blockchain-1-768x398.png 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/blockchain-1.png 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2018\/02\/blockchain-1-600x311.png 600w\" sizes=\"auto, (max-width: 494px) 100vw, 494px\" \/><\/a><\/p>\n<p>The value created with the blockchain technology include: higher accuracy than paper tracking and manual inspections due to constant cross-checking, broader accessibility so multiple companies can easily access or share data, higher security, and shorter time needed to trace back to a source of contamination. The value captured is potential monitoring cost savings and supply chain efficiencies, and stronger consumer confidence and sales for Walmart if the company can reduce outbreaks and increase response times when issues do arise.<\/p>\n<p>Although the technology and testing are in the early stages, the initial results are promising and Walmart is taking a good first step to evaluate these technologies for its business.<\/p>\n<p>&#8212;&#8211;<\/p>\n<p><u>Sources:<\/u><\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2017\/10\/10\/wal-mart-reiterates-earnings-outlook-plans-to-grow-grocery-digital.html\">https:\/\/www.cnbc.com\/2017\/10\/10\/wal-mart-reiterates-earnings-outlook-plans-to-grow-grocery-digital.html<\/a><\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2017\/02\/27\/wal-marts-latest-technology-play-takes-aim-at-both-target-and-amazon.html\">https:\/\/www.cnbc.com\/2017\/02\/27\/wal-marts-latest-technology-play-takes-aim-at-both-target-and-amazon.html<\/a><\/p>\n<p><a href=\"https:\/\/blog.walmart.com\/innovation\/20170412\/when-convenience-and-technology-meet-pickup-customers-win\">https:\/\/blog.walmart.com\/innovation\/20170412\/when-convenience-and-technology-meet-pickup-customers-win<\/a><\/p>\n<p><a href=\"https:\/\/blog.walmart.com\/innovation\/20170512\/a-look-inside-walmarts-next-gen-test-stores\">https:\/\/blog.walmart.com\/innovation\/20170512\/a-look-inside-walmarts-next-gen-test-stores<\/a><\/p>\n<p><a href=\"http:\/\/brandchannel.com\/2017\/10\/11\/walmart-digital-101117\/\">http:\/\/brandchannel.com\/2017\/10\/11\/walmart-digital-101117\/<\/a><\/p>\n<p><a href=\"https:\/\/www.forbes.com\/sites\/bernardmarr\/2017\/01\/23\/really-big-data-at-walmart-real-time-insights-from-their-40-petabyte-data-cloud\/#5f2b14c26c10\">https:\/\/www.forbes.com\/sites\/bernardmarr\/2017\/01\/23\/really-big-data-at-walmart-real-time-insights-from-their-40-petabyte-data-cloud\/#5f2b14c26c10<\/a><\/p>\n<p><a href=\"https:\/\/www.cips.org\/supply-management\/analysis\/2017\/june\/case-study-walmart\/\">https:\/\/www.cips.org\/supply-management\/analysis\/2017\/june\/case-study-walmart\/<\/a><\/p>\n<p><a href=\"https:\/\/www.investopedia.com\/news\/walmart-and-ibm-will-use-blockchain-ensure-food-safety-wmt-ibm\/\">https:\/\/www.investopedia.com\/news\/walmart-and-ibm-will-use-blockchain-ensure-food-safety-wmt-ibm\/<\/a><\/p>\n<p><a href=\"http:\/\/resolvesp.com\/blockchains-supply-chains-part-ii\/\">http:\/\/resolvesp.com\/blockchains-supply-chains-part-ii\/\u00a0 \u00a0 \u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite starting out slow against Amazon, Walmart is increasingly becoming a \u201cdigital winner\u201d, as it builds out a fast-growing ecommerce business and also leads in digital innovations when compared to other brick-and-mortar retailers.<\/p>\n","protected":false},"author":2227,"featured_media":6299,"comment_status":"open","ping_status":"closed","template":"","categories":[1443,814,647,1919,7],"class_list":["post-6298","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-blockchain","category-ecommerce","category-retail","category-walmart","category-winner","hck-taxonomy-organization-walmart","hck-taxonomy-industry-retail","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/digital-winners-losers-2018\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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