Executive Briefings

Walmart Scales Back Supercenters, Focuses on Smaller Stores, Omnichannel Strategy

Walmart management is trying to turn a very big ship. As supercenters underperform, the focus has shifted to small stores and omnichannel initiatives, moves confirmed by Walmart CEO Doug McMillon during a meeting with analysts.

Walmart Scales Back Supercenters, Focuses on Smaller Stores, Omnichannel Strategy

McMillon declared there was "no excuse" for its weak U.S. performance, and the plan to fix it includes scaling back supercenter growth in the United States while simultaneously allocating more funds to building out omnichannel capabilities, including distribution that supports same-day delivery.

The enterprise-wide approach is new for Walmart.

"In the past, we've tended to roll up our plans from markets and segments, but this year we've started with an enterprise-wide approach. The internet, mobile, data and technology present opportunities across the world and across our businesses to better serve the changing customer," McMillon said. "We've taken a fresh look at where we want to play–what businesses, markets, formats and services we need and how to win–what our customer value proposition should be.”

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McMillon declared there was "no excuse" for its weak U.S. performance, and the plan to fix it includes scaling back supercenter growth in the United States while simultaneously allocating more funds to building out omnichannel capabilities, including distribution that supports same-day delivery.

The enterprise-wide approach is new for Walmart.

"In the past, we've tended to roll up our plans from markets and segments, but this year we've started with an enterprise-wide approach. The internet, mobile, data and technology present opportunities across the world and across our businesses to better serve the changing customer," McMillon said. "We've taken a fresh look at where we want to play–what businesses, markets, formats and services we need and how to win–what our customer value proposition should be.”

Read Full Article

Walmart Scales Back Supercenters, Focuses on Smaller Stores, Omnichannel Strategy