Where Walmart Is Winning (Hint, It's More Than Just Product And Price) - Forbes

Walmart had a “Blowout 4^th Quarter”, as noted in Walter Loeb’s Forbes analysis. 2018 Q4 comp sales grew 4.2% and eCommerce sales rocketed ahead 43%. Those are impressive stats, but the aha data point for me came with Gartner L2’s revelation that Walmart invested 53% of its November/December TV spend on ads related to fulfillment – messages referencing order online, pick up in store or free 2-day shipping with no membership fee.

So, through the holidays, Walmart pushed process as much, if not more than product and price.

The Bentonville powerhouse has stepped it up even more this year, with the release of a blockbuster TV commercial which takes 90 (highly entertaining) seconds to inform the viewer that you can order online and pick up groceries for free at Walmart. That's all to support a massive and on-going expansion of pickup locations and services.

So a business built on EDLP (Everyday Low Prices) is going full tilt towards EDHC (Everyday High Convenience) and it's resonating with consumers. As Walmart President and CEO Doug McMillon said in regard to the stellar Q4 results: "We're excited about the work we're doing to reach customers in a more digitally-connected way. Our commitment to the customer is clear - we'll be there when, where and how they want to shop and deliver new, convenient experiences that are uniquely Walmart." Not a word about product or price.

Innovation in "convenient experiences" extends to Easy Reorder and Express Returns.

It seems that in this contemporary retail era, shoppers are as focused on how an order is placed and fulfilled as they are on what they purchase and how much it costs . That's very different to the simpler times when Sam Walton set up shop in Rogers, Arkansas, in 1962, with a sign above the door that read: "We Sell For Less". Today, it's a case of "yes, and". Yes, of course I want a great product at a great price (that's cost of entry), and I want it on my terms, in my timeframe (and don't even think about charging me for fulfillment).

The New Arms Race In Retail is convenience, as I wrote last year on Forbes.com, and the "catalyst for convenience" is Amazon. Their influence used to be restricted to online, but Amazon's move into bricks and mortar has concentrated on removing friction in the physical world in ways that are attractive, novel and...just plain fun. In Amazon Go stores (10 open and more on the way), shoppers get a big kick out of walking out "without paying". In fact, an Amazon representative told me recently that people are gamifying the shopping experience - trying to see how fast they can get in and get out, with the the length of their shopping trip (the "score") pinged to their phone or watch.

Gamifying the shopping experience at Amazon Go in SeattleJon Bird

Amazon Fresh Pickup (still in trial at two Seattle locations), allows shoppers to order via their mobile, and drive in to pick up as little as 15 minutes later.

Number plate recognition means that the order is automatically matched to the vehicle, so that the trunk can be popped, groceries go in, and you're good to go. Easy.

Get ready for a lot more innovation in convenience from the major players. As a Walmart press release quips: "what's 'easy' in 2018 might feel old-fashioned in 2028." Self-driving delivery vehicles are being trialed right now. Check out Stop & Shop's "mini grocery stores", Walmart's test with Ford and Kroger's partnership with Nuro in Arizona, which is already seeing deliveries to customers. (The latter is my personal favorite - the vehicles are both cool and cute.)

Nuro and Kroger self-driving delivery vehicleNURO AND KROGER

As one of the "very first customers" in the Kroger/Nuro video says: "Convenience is the future, right." Customers are craving convenience, they are placing incredibly high value on ease of order and collection/delivery, and they are voting with their wallets. Product and price are both important, but all things being equal, process is winning them over.

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