Wal-Mart offers discounts for online orders picked up in store

Wed Apr 12, 2017 5:37am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Nandita Bose

CHICAGO (Reuters) - Wal-Mart Stores Inc will offer 'pickup discounts' to U.S. shoppers on items they order online and pick up in-store, as it revamps its e-commerce offerings at a faster pace to close the gap with larger rival Amazon.com Inc.

Online orders picked up in store already qualify for no shipping charges since the retailer saves on shipping fees. The latest discounts come on top of that. For example, a Vizio 70-inch 4K Ultra HD television priced at $1,698 for store pick up will qualify for an additional discount of $50.

Marc Lore, head of Wal-Mart's e-commerce operations, told Reuters in an interview on Tuesday he expects the move to boost transactions online and improve customer traffic in stores.

"This is a very material change in the value proposition we are offering customers," he said.

Lore said Wal-Mart is able to offer these discounts as it is able to eliminate delivery costs by leveraging its fleet of more than 6,700 trucks to deliver products from warehouses to stores.

The decision to offer these discounts is the latest move by Lore to revamp an existing e-commerce offering from Wal-Mart. The change is expected to improve the retailer's competitive advantage by making its 4,700 U.S. stores more relevant to shoppers in a digital age, analysts said.

Lore has been at the forefront of bold moves Wal-Mart has undertaken to challenge Amazon since he took charge of the retailer's struggling online business in August, after Wal-Mart acquired Jet.com, a company Lore founded, for over $3 billion.

Since then he has acquired three online retailers, shuffled Wal-Mart's e-commerce decks and made two-day shipping free on all online orders over $35, without any membership fees, to compete with Amazon's popular Prime shipping program.   Continued...

 
Walmart signage is displayed outside a company's store in Chicago, Illinois, U.S. November 23, 2016. REUTERS/Kamil Krzaczynski