Why Walmart has a case of the (Cyber) Mondays - Insider Intelligence

Strong marketplaces provide the traffic scale and quality desired by brands, and the ad auction density to drive price efficiency—which in turn encourages more investment from brands. Amazon’s monetization may not be realistic in the near term, but if Walmart could even close the gap with Instacart on average revenues per user, it would add a couple billion dollars in ad revenues.

Competing with Amazon Prime: The Walmart+ paid membership program has been gaining steady traction since its 2021 inception, with 16% of shoppers indicating they are members, according to our latest Bizrate Insights survey.

In the short term, Walmart is sacrificing a lot of margin to encourage more membership, and it likely has to do with its fast-growing retail media business, Walmart Connect. Improving its loyalty program and digitizing more transactions are critical to building out its first-party data strategy, the fuel for Walmart Connect.

• With a huge portion of its brick-and-mortar transactions happening with non-traceable tender (aka “cash”), Walmart is currently at a relative first-party data disadvantage to its nearest competitors Amazon and Kroger, both of which have almost all transactions via traceable tender.

The big takeaway: Walmart’s flywheel strategy is now coming into sharper focus, and it’s not shying away from competition with Amazon in the process. The bigger a foothold it grabs in ecommerce, the faster that flywheel will accelerate. That’s why Walmart is leaning into ecommerce this holiday season with a major case of the Mondays.

This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.

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