Figure 1- <\/strong>Walmart\u2019s eCommerce growth [2]<\/p>\n To compete, the company has been taking a series of digitally-focused actions, the most extreme of which was this summer\u2019s $3.3 billion acquisition of Jet.com, the largest eCommerce acquisition in recent history (see Figure 2<\/strong> below) [3].<\/p>\n Figure 2- <\/strong>Largest eCommerce acquisition exits since 2009 [3]<\/p>\n This acquisition furthered Walmart\u2019s ability to offer EDLP by embracing Jet\u2019s Smart Cart algorithm. Examples of Smart Cart passing savings on to the customer include the algorithm reducing the price on items in the same warehouse as items the customer has already added to their basket or reducing price if the customer relinquishes their right to return an item (see Figure 3<\/strong> below) [4].<\/p>\n Figure 3- <\/strong>Jet.com\u2019s Smart Cart technology [5]<\/p>\n With two-thirds of the U.S. population living within 5 miles of a Walmart [6], a key component of the customer promise is convenience. To better offer convenience online, Walmart is leveraging Uber and Lyft\u2019s on-demand ride-hailing technology to deliver products to customers instantaneously. Through this partnership, customers place orders online and store employees pack the order and use the on-demand technology to hail a taxi that delivers the goods [7]. Finally, Walmart Labs, a standalone division of the company, is helping advance the retailer\u2019s digital capabilities by \u201cbuilding the next generation of innovations that will influence the behavior of shoppers\u201d (Meet Anand Rajaraman<\/em>, Sabharwal, 2011) [8]. One such innovation is Shopycat, a Facebook app that uses social media profiles and comments to generate gift ideas [9]. This technology helps Walmart.com customers find products efficiently (see Figure 4<\/strong> below).<\/p>\n Figure 4- <\/strong>Shopycat screenshot [10]<\/p>\n Digital technology has also helped develop Walmart\u2019s operational model in-store. In a recent pilot, the retailer partnered with General Electric to install iBeacon technology into overhead lighting. This technology uses Bluetooth communication with customers\u2019 mobile devices to strategically serve up special offers depending on the customer\u2019s location in the store [11]. Additionally, Walmart has rolled out Walmart Pay to all regions, which enables customers to pay at checkout by scanning a QR code (see Figure 5 <\/strong>below), reducing wait time at the cashier. The technology requires use of the Walmart app, which opens up a new avenue of communication with the customer. Through the app, Walmart can better hone customer data to \u201cpush\u201d customized content and offers, enhancing the company\u2019s ability to serve its consumers effectively [12].<\/p>\n Figure 5- <\/strong>Walmart Pay [13]<\/p>\n Despite these technological advancements, Walmart has an opportunity to adopt digital innovation to an even greater extent to better serve the customer. Walmart can better direct the online customer to product they want at a price they want through the use of Google\u2019s local inventory ads. These ads allow customers to find product at a store nearby and provide price transparency, thereby ensuring the customer can find a low-price that suits them before leaving the house. Walmart briefly experimented with this technology in 2015 but has not embraced it at a large scale [14]. In-store, Walmart can integrate visual search into its app, through a company like Slyce. This technology allows customers to take a picture of a product and match it to merchandise in a retailer\u2019s catalog. If used at the shelf, customers could attain more information on the product and potentially, see special offers, arming the customer with more information before they buy [15]. Finally, Walmart can experiment with \u201csmart shelves\u201d, a technology already embraced at many major retailers. Smart shelves digitally display pricing information at the shelf and allow customers to \u201cclick\u201d through to additional detail, like nutritional information (see Figure 6 <\/strong>below). These shelves also have weight sensors that send signals to store employees as inventory runs low [16]. Such technology would allow Walmart to ensure customers can always find product in-stock with the information they need before purchasing.<\/p>\n Figure 6- <\/strong>Smart shelf technology at Kroger<\/p>\n Walmart has taken great strides to enhance is online and in-store operating model and better deliver on its customer promise by adapting digital technologies. As competition continues to grow fierce, the retail giant will need to continue taking advantage of innovation to maintain its position at the top. (799 words)<\/p>\n <\/p>\n [1] Sarah Nassauer, \u201cWalmart seals the deal for Jet.com\u201d, Wall Street Journal, <\/em>August 9, 2016, http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/abicomplete\/docview\/1809934228\/A3564674AE024D2DPQ\/2?accountid=11311<\/a>, accessed November 2016.<\/p>\n [2] Jack Foley, \u201cE-commerce is becoming the Achilles Heel for Wal-Mart\u201d, AmigoBulls<\/em>, June 30, 2016, http:\/\/amigobulls.com\/articles\/e-commerce-is-becoming-the-achilles-heel-for-wal-mart<\/a>, accessed November 2016.<\/p>\n [3] Alison Griswold, \u201cJet.com\u2019s $3.3 billion sale to Walmart is a big, well-timed win for its investors\u201d, Quartz<\/em>, August 8, 2016, http:\/\/qz.com\/753018\/jet-coms-3-3-billion-sale-to-walmart-is-a-big-well-timed-win-for-its-investors\/<\/a>, accessed November 2016.<\/p>\n [4] Lindsay Whipp, \u201cWalmart hopes to add thrust with Jet.com\u2019s Marc Lore onboard\u201d, FT.com<\/em>, August 12, 2016, http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/abicomplete\/docview\/1818261828\/A3564674AE024D2DPQ\/7?accountid=11311<\/a>, accessed November 2016.<\/p>\n [5] Jillian D\u2019Onfro, \u201cHere\u2019s what it\u2019s like to test out the new e-commerce site that\u2019s trying to take on Amazon\u201d, Business Insider<\/em>, April 30, 2016, http:\/\/www.businessinsider.com\/jet-beta-launch-2015-4<\/a>, accessed November 2016.<\/p>\n [6] Shelly Banjo, \u201cWal-Mart\u2019s E-Stumble With Amazon\u201d, Wall Street Journal<\/em>, June 19, 2013, http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/abicomplete\/docview\/1369014802\/A3564674AE024D2DPQ\/5?accountid=11311<\/a>, accessed November 2016.<\/p>\n [7] Sarah Nassauer, \u201cWal-Mart to Test Grocery Delivery With Uber and Lyft\u201d, Wall Street Journal<\/em>, June 3, 2016, http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/abicomplete\/docview\/1793492702\/64D5822E8DBE460APQ\/1?accountid=11311<\/a>, accessed November 2016.<\/p>\n [8] Shruti Sabharwal, \u201cMeet Anand Rajaraman, helping Walmart change the way it sells to customers\u201d, The Economic Times<\/em>, November 10, 2011, http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/abicomplete\/docview\/902822590\/2B5D6A507F2F4072PQ\/11?accountid=11311<\/a>, accessed November 2016.<\/p>\n [9] Jeff Nack, \u201cWalmart seeks boost from tech with Labs: Developments in search and e-commerce could help retailer leapfrog over competitors\u201d, Advertising Age<\/em>, September 12, 2011, http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/abicomplete\/docview\/889955390\/2B5D6A507F2F4072PQ\/20?accountid=11311<\/a>, accessed November 2016.<\/p>\n [10] Sarah Perez, \u201cWalmart Launches Shopycat, A Social Gift Finder Built On Top of Facebook\u201d, Tech Crunch<\/em>, November 30, 2011, https:\/\/techcrunch.com\/2011\/11\/30\/walmart-launches-shopycat-a-social-gift-finder-built-on-top-of-facebook\/<\/a>, accessed November 2016.<\/p>\n [11] Shubhi Mittal, \u201c25 Retailers Nailing it with their Proximity Marketing Campaigns\u201d, Beaconstac<\/em>, February 11, 2016, https:\/\/blog.beaconstac.com\/2016\/02\/25-retailers-nailing-it-with-their-proximity-marketing-campaigns\/<\/a>, accessed November 2016.<\/p>\n [12] Retail payments research, \u201cWhere Walmart Pay Won\u2019t Go\u201d, Kate Fitzgerald, ISO & Agent, 2016, ABI\/INFORM via ProQuest, accessed November 2016.<\/p>\n [13] Jon Fingas, \u201cWalmart wants you to pay through its mobile app\u201d, Engadget<\/em>, December 10, 2015, https:\/\/www.engadget.com\/2015\/12\/10\/walmart-pay\/<\/a>, accessed November 2016.<\/p>\n [14] Alistair Barr, \u201cGoogle, Wal-Mart Part Ways Over Local Shopping Ads\u201d, Wall Street Journal, <\/em>March 4, 2015, http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/abicomplete\/docview\/1660495974\/8143C97B7FB34A7APQ\/1?accountid=11311<\/a>, accessed November 2016.<\/p>\n [15] Slyce website, Technology page, http:\/\/slyce.it\/technology<\/a>, accessed November 2016.<\/p>\n![\"figure-1\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Figure-1-11.png\")
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