Amazon has made it difficult for brick-and-mortar retailers to do business with their discount deals and lucrative offers. Many of them, like American Apparel, Macy’s, Kohl’s, and others have already decided to close down several outlets. However, the retail giant Wal-Mart (NYSE:WMT) has decided to take the competition to Amazon. It is making several changes to beef up their online operations.
Wal-Mart Makes Management Changes to Compete Better
They have already made a few management changes to deal with the Amazon onslaught better. It has been decided that Jeremy King will be the only technology officer henceforth, looking at both their physical as well as online stores. Tony Rogers has been deputed to look after the marketing, for Jet.com, Walmart.com, and also Wal-Mart stores in the United States.
Unifying the management does seem like a good move. To take on Amazon (NASDAQ:AMZN), according to analysts, Wal-Mart will have to use their physical store locations to their advantage. One person looking after both should help in this regard. Aligning their brick-and-mortar and e-commerce operations will help them streamline operations, and take on the challenge better.
Wal-Mart comes second behind Amazon in US online commerce, but they are trailing by a huge margin. What’s worrying is that, the gap seems to be getting wider as well because Amazon is simply outpacing all competition.
That may change, or at least, get checked now. Marc Lore, who heads the digital operations of Wal-Mart says, “We’re on a mission to reshape e-commerce and create a best-in-class shopping experience that empowers customers to save money in completely new ways”. Marc has already proved his mettle with Jet.com where he started the “buy more, save more” plan, which was a hit with the consumers. With the huge supply chain of Wal-Mart, he is in a better position now to achieve his goals.
Wal-Mart (NYSE:WMT) is also improving their online order and pickup service, which should help.
Amazon Is Getting Into Wal-Mart Territory
Amazon isn’t sitting idle, even as Wal-Mart is attempting to take the competition to them. The e-commerce retailer is trying to grab market share in many of the biggest markets of Wal-Mart, such as the grocery business. There is the Prime Fresh grocery delivery service which, though, has been slow to pick up. They have also unveiled the high-tech convenience store Amazon Go where customers can check out without a clerk, as their Amazon accounts are automatically charged.