(Image Source: CNBC)
CEO Doug McMillon of Walmart is trying to add a new profit source to its pool and expand Walmart’s business beyond retail. Walmart has partnered with Adobe to sell its e-commerce software to small and medium retailers. With this software, these merchants can provide ‘buy online, pick up in store’ services and will also be able to add products to Walmart online marketplace in just a few clicks.
Walmart has benefited greatly during the pandemic thanks to developing this technology prior to COVID-19. The online sales of Walmart jumped 79% last fiscal year. Retailers in the U.S with the buy online pick up in stores option also saw a rise from 7% to 22% of orders fulfilled that way.
Answering why Walmart wants to sell its competitive advantage to their competitors, Anshu Bhardwaj, vice president of technology strategy and commercialization at Walmart Global Technology said, “Digitization is happening everywhere as the consumer is evolving. There’s no choice but to evolve with them.”
The software business opens new profit streams for Walmart and also fits into the company’s strategy. This will allow Walmart to expand its business, serve new customers and bring profit back to fund new initiatives.
For Adobe, this partnership will increase its visibility and also support the company’s existing e-commerce software.
“We can now offer a more holistic solution, a best-in-class omnichannel experience. From Adobe, [these businesses] will get best-in-class e-commerce experiences, and best-in-class omnichannel experiences from Walmart,” said Peter Sheldon, senior director of commerce strategy at Adobe.