As Walmart looks to reduce Amazon's growing lead in consumer retail spending, the retail giant looks to new technology to blend digital and physical shopping and provide a more frictionless customer experience. ing.
This week, the chain launched a range of technology initiatives that bring digital convenience to the brick-and-mortar experience and bring an immersive in-person feel to its e-commerce platform. For example, retailers have started testing digital labels. According to recent reports, it will light up to help shoppers navigate its expansive store. By activating these labels through the app, customers can easily find the products they are looking for.
These digital labels are already being used by Walmart employees in some locations, flashing green to guide shelf stockers and flashing blue to help product pickers assemble e-commerce purchases. We are supporting. Trials of such technology to assist consumers in stores are now reportedly scheduled for later this year.
Additionally, the retail giant announced on Wednesday (January 31) that it plans to construct, convert or renovate 150 stores Over the next five years, the “future store” A concept incorporating interactive technology that combines online and in-person shopping.
The retailer also aims to improve the digital buying experience by making it feel more like physical shopping, and is now expanding its offerings by offering consumers the ability to virtually try on over 750 glasses. We use features to give you a realistic preview of how your glasses will look on your glasses. Reality (AR).
The move comes as rival Amazon continues to expand its lead in retail, according to the November issue of PYMNTS Intelligence magazine. Entire payslip“Amazon Extends Lead Over Walmart in Retail Spending.”
The study, which utilized each company's earnings report along with national data from the U.S. Census Bureau and the Bureau of Economic Analysis, found that as of the third quarter, e-commerce giants accounted for an 8.2 share of consumer retail spending. % showed an increase from the previous week. Last quarter it was 7.6%. Meanwhile, Walmart's share remained unchanged from the previous quarter at 7.2%.
On the other hand, AmazonJust Walk OutComputer vision checkout functionality. Gather insights about consumers' in-store habits in the same way that merchants track consumer behavior on e-commerce platforms. Retailers also have dash cart Smart shopping cart technology similarly brings digital checkout to the in-store shopping experience.
But last week's Amazon update was more focused on pure e-commerce innovation.
The e-commerce giant istalk to a friend” is designed to add a social and collaborative element to shopping on the platform for all customers in the United States, Australia, Belgium, France, Germany, India, Italy, Mexico, the Netherlands, Poland and Spain. Mobile shopping feature. The company announced on Tuesday (January 30) that it will join Saudi Arabia, Singapore, Sweden, Turkey, the United Arab Emirates (UAE) and the United Kingdom.
“Customers rely on a variety of sources when making purchasing decisions, and recommendations from friends and family are often one of the most trusted sources,” said Oliver Messenger, Director of Amazon Shopping. said the company. blog post.
Also on Tuesday, the company touted improved delivery times for digital orders from Prime members.
read more: Consumers purchased over 500 million items from third-party sellers on Amazon in 2023
Amazon's dominance is most evident in e-commerce. According to data from the Whole Paycheck report, Amazon has a 53% share of total U.S. e-commerce retail spending, while Walmart's share is less than 7%.
Both digital and physical channels have become key battlegrounds as these retail giants compete for consumer spending.
Findings from PYMNTS IntelligenceConsumer interest in apps they use every dayBased on insights from a survey of more than 3,300 consumers in the U.S. and Australia, the study found that of the 61% of consumers who purchased a non-grocery retail item in the past month, 72% It became clear that he had purchased it. At least sometimes the device is connected. Furthermore, 61% accessed it through traditional channels at least some of the time.
But consumers are also interested in experiences that blend digital and physical, such as Walmart's AR try-on feature. For example, the PYMNTS Intelligence study “How We Will Pay Report: How connected devices enable multitasking among digital-first consumersOf the 95% of consumers who own or have at least one internet-connected device in their home, 39% use a mobile app to check their clothing before purchasing. I found that I was interested in seeing how the clothes looked on me. Additionally, 5% are already doing this.
Integrating technology into the shopping experience will continue to be a key battleground as competition between Walmart and Amazon intensifies. Both companies strive to meet the evolving needs and preferences of consumers who increasingly rely on both digital and traditional channels for their shopping needs.
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