Wal-Mart Stores, Inc. (NYSE:WMT) has once again reaffirmed its commitment to taking other retailers head on when it comes to e-commerce. The nation’s largest retailer says it is merging two of its tech divisions as it moves to solidify its prospects on e-commerce.
Targeting Tech-Savvy Consumers
Wal-Mart Stores, Inc. (NYSE:WMT) operates a tech division at its headquarters in Bentonville that mostly develops systems and application for stores. It also has a team at its Walmart Labs in San Bruno Calif that spearheads its efforts in building e-commerce tech.
A merger of the two, gives rise to ‘Walmart Technology’ a company dedicated to developing innovations for e-commerce. There is no doubt that the company is betting that one fully integrated tech team could be much better than two.
Customers are no longer visiting brick and mortar stores as they used to, in the past. Most of them have become tech savvy yearning for systems that allow them to purchase goods online and have them delivered at the doorstep. The change is forcing most of the retailers to change their strategy if they are to remain relevant in the sector.
Taking the Fight to Amazon
Walmart just like other retailers has been bolstering its efforts as it moves to address a sudden change in consumers shopping patterns. The company has poured billions of dollars on e-commerce as it strives to offer customers seamless shopping experience online.
A recent launch of Walmart Pay all but highlights the company’s willingness to adapt to changing consumer habits as most of them become tech savvy.
Being the third largest e-commerce giant behind Amazon.com, Inc. (NASDAQ:AMZN) and Apple. Inc (NASDAQ:AAPL) is not enough for Wal-Mart Stores, Inc. (NYSE:WMT). With the ongoing closure of stores across the country, the company needs to solidify its prospects online to offset any revenue lost from the closures. Its growth rate however has not been the best in the recent past having slowed in the third quarter as other players continued to make gains.
Merging the two division could help Wal-Mart Stores, Inc. (NYSE:WMT) ramp up its online delivery system. That is the only way the retailer will be able to compete against Amazon, which boast of one of the most effective logistics networks.
