Walmart follows Amazon's lead with a revamped website and app

Walmart has made a major upgrade to its e-commerce website and app. Starting this week, users will see bigger and brighter photos, videos and social media-inspired content. The retail giant hopes to use this move to drive more purchases.

Tom Ward, head of Walmart's U.S. e-commerce division, said the upgrades are designed to make online shopping easier and more attractive. "When you walk into a store, you're usually inspired and excited by what you see, so we want to inspire that same inspiration and excitement in our nearest stores and on our app," he said.

The big-box retailer has reinvented itself as consumers grow more reluctant to buy apparel and consumer electronics and pay higher prices for essentials like food and shelter. U.S. sales of discretionary items fell 4% in dollars and 5% in units through February, according to Circana.

Walmart has felt the impact, too. In recent quarters, its sales have increasingly come from groceries rather than general merchandise. Walmart Chief Financial Officer John David Rainey said in February that consumers’ more budget-conscious mentality was an important factor in the company’s performance this year.

Walmart expects sales to soften in the coming months. It expects U.S. same-store sales to grow 2% to 2.5% (excluding fuel) in the coming fiscal year. The company also expects adjusted earnings per share to be between $5.90 and $6.05 for the current fiscal year. This would mean a decline from the previous fiscal year, when Walmart's U.S. same-store sales grew 6.6% and adjusted earnings per share were $6.29 (excluding fuel).

Tom Ward said that in addition to offering lower prices, Walmart also hopes to get fresh, fashionable and seasonal merchandise in front of customers to attract their attention, such as spring dresses, patio furniture and Easter basket toys.

The updated look of the website and app could also boost sales for third-party sellers that are already on Walmart’s marketplace or may join it, he said.

The report said that this move also represents Walmart's latest attempt to emulate Amazon's strategy. From establishing its own membership service Walmart+ to compete with Amazon Prime, to continuously strengthening its third-party seller market in recent years, to launching logistics services to help sellers fulfill order delivery, Walmart has been constantly trying to tear a hole in the Amazon empire and trying to surpass other competitors.

Driven by the epidemic, e-commerce has become a more important part of Walmart's business. According to data released by the company, Walmart's online sales reached US$53.4 billion in the last fiscal year ending in late January, accounting for nearly 13% of its total US net sales. This is an increase from US$15.7 billion and 5% in 2019. In the recent holiday season, Walmart's US online sales increased by 17% year-on-year, and increased by 12% year-on-year for the entire fiscal year.

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