Walmart has enjoyed being the top retailer and #1 on Fortune’s list for years, but Amazon is closing that gap and may soon take the top spot. According to The Wall Street Journal, Walmart’s sales last year came in at $648 billion, growing at a rate of 6%. Meanwhile, Amazon’s revenue came in at $575 billion, with a growth rate of 12%.

The numbers alone don’t tell the whole story, however, but still pose a major problem for Walmart. The vast majority of the company’s revenue comes directly from retail sales. In contrast, a large portion of Amazon’s revenue comes from its other businesses, such as cloud computing.

WSJ’s sources say this difference is a concern among Walmart executives, since the company’s opportunities to compete with Amazon outside of retail sales are limited. Instead, Walmart execs seem to be focusing on providing the best service and being the best corporate citizen, as opposed to being the biggest, in what may be an acknowledgment of the inevitable.

That narrative appears to already be making its way into the company’s official stance, with a company spokeswoman telling WSJ that Walmart is “constantly striving to be the best version of ourselves, staying true to our values and offering quality, affordable goods and services. Everything else will take care of itself.”

Walmart is trying to diversify its revenue sources. One such attempt involves the company teaming up with Salesforce to sell its fulfillment and delivery software and solutions to other companies. Despite such efforts, Walmart still can’t compare to Amazon’s extra-retail revenue.

As WSJ points out, the one stronghold Walmart still has is groceries, but Amazon is making headway even there, with the company projected to take 20% of the US grocery market by the end of the decade.

Walmart is working to streamline operations, shutting down its Walmart Health initiative and eliminating hundreds of corporate jobs. The company is also taking a page out of Amazon’s book, launching its Walmart+ subscription service to take on Amazon Prime.

Only time will tell if such measures—along with its diversification efforts—help the retail giant fend off Amazon

According to The Wall Street Journal, the retail giant’s workers in Atlanta, Dallas, and Toronto have been asked to move to the company’s larger hubs and corporate offices. The outlet’s sources report that employees will be allowed to continue working remotely to some degree, as long as the majority of their time is spent in the office.

The move comes just weeks after Walmart announced it was shutting down Walmart Health, citing “a lack of profitability that make the care business unsustainable for us at this time.”

With ongoing concerns about the economy, Walmart is clearly trying to cut costs and streamline operations. It’s unclear if the corporate jobs that were axed were supportive roles for Walmart Health, or if they were unrelated.

The announcement marks a significant shift for the retailer, which has traditionally focused on its vast physical and e-commerce platforms. With the majority-owned fintech subsidiary, One, now offering installment loans, Walmart is expanding its financial offerings and setting the stage to disrupt the existing BNPL landscape dominated by players like Affirm and Afterpay.

A report on CNBC discusses Walmart’s entrance into the Buy Now, Pay Later Arena:

Strategic Expansion Beyond Retail

“Walmart is not just a retail giant anymore; it’s moving into high-margin businesses,” CNBC.com’s Melissa Repko explained during a discussion. The retailer is adopting a strategy similar to Amazon’s by focusing on its core retail operations and exploring more profitable sectors such as advertising and financial services. The introduction of installment loans through its fintech arm signifies Walmart’s intent to tap into the lucrative financial industry, offering consumers new ways to finance their purchases directly through Walmart, which could enhance customer loyalty and increase sales.

This shift towards financial services underscores Walmart’s intention to maximize profits and reduce reliance on low-margin retail sales. By creating its BNPL service, Walmart aims to retain more control over its financial ecosystem, potentially offering more competitive rates and terms than external providers. This could improve profit margins and attract a new demographic of consumers looking for flexible payment solutions.

Impact on Existing Partnerships

The new initiative by Walmart’s fintech One is raising concerns among its current partners. “With Walmart building out its technology to support BNPL loans, partners like Affirm might soon find their relationship with the retailer in jeopardy,” added CNBC’s Hugh Son. As Walmart moves to integrate these services in-house, it might reduce its reliance on third-party financial technology providers, which could reshape current business alliances and affect the competitive dynamics within the BNPL space.

Particularly troubling for existing partners like Affirm is Walmart’s potential to fully replace its services with its solutions. If Walmart’s in-house BNPL offerings gain traction, it could significantly reduce its partnerships with specialized fintech firms, which rely heavily on the volume generated by such large retail clients. This strategic shift could force these companies to rethink their business models as Walmart aims to consolidate more of its financial operations internally.

Future of Walmart’s Fintech Ventures

Speculation is growing about the potential future expansions of Walmart’s fintech capabilities. Analysts are curious whether One will evolve to offer branded credit cards, further enhancing Walmart’s financial service offerings. “It’s too soon to tell,” remarked a CNBC analyst during the interview, highlighting the cautious approach Walmart is taking in unveiling its complete fintech strategy. However, the potential for One to encompass features such as credit issuance is significant, considering Walmart’s vast retail network and customer base.

Integrating these financial services within Walmart’s ecosystem could be a game-changer for the retailer and its customers. By offering a seamless financial experience under the Walmart umbrella, One could enhance customer retention and increase average spend per visit. This strategic move aligns with Walmart’s long-term vision to remain a dominant player in the retail sector and establish a significant foothold in the financial services industry.

Walmart’s History and Strategy in Financial Services

Walmart’s foray into financial services is not new; the company has been attempting to penetrate this sector since the 1990s. Despite facing regulatory hurdles and opposition from banking lobbyists, Walmart has persisted in its efforts to integrate financial services into its offerings. This persistence reflects the retailer’s understanding of the financial sector’s potential profitability and its desire to diversify its revenue streams beyond the low-margin retail industry.

Historically, Walmart’s attempts to establish a banking division have been thwarted by regulatory challenges. However, the landscape appears to be changing as Walmart employs innovative strategies to circumvent these barriers. By partnering with Ribbit Capital, a renowned fintech VC firm known for its investments in Affirm and Robinhood, Walmart is well-positioned to overcome previous obstacles. This partnership underlines Walmart’s commitment to enter the financial services market and innovate within it.

Leading companies like Walmart, Tyson Foods, and Maersk are already harnessing AI to gain a competitive edge. By leveraging advanced analytics and machine learning, these supply chain giants can predict demand fluctuations, optimize inventory levels, and identify alternative suppliers at lightning speed.

“It’s a game-changer,” says a future logistics expert. “AI is allowing these companies to be nimble and responsive in ways that were impossible just a few years ago.”

Take Walmart, for example. The retail behemoth uses computer vision technology to monitor product movement in its stores, enabling it to spot supply chain bottlenecks in real-time. When a product’s sales start to deviate from forecasted patterns, Walmart’s AI system can quickly flag the issue and recommend adjustments.

“There are no more bare shelves or excess inventory—AI is helping us get the right products to the right customers at the right time,” according to one expert’s theory.

But the AI revolution isn’t just benefiting the big players. Small and medium-sized businesses are also taking action, using AI-powered tools to optimize their operations and enhance customer service.

“I used to spend hours poring over spreadsheets, trying to figure out how much inventory to order,” says a hypothetical Sarah Johnson of the future, who owns a local hardware store. “Now, my AI assistant does all the heavy lifting, and I’ve cut my costs by 15% while improving my delivery times.”

Of course, the rise of AI in supply chains isn’t without its challenges. Experts warn that companies must invest in robust data infrastructure and upskill their workforce to capitalize on these technologies fully. And there are valid concerns about the impact on jobs, with some predicting that AI could automate away specific roles in the logistics industry.

Overall, the consensus is clear: AI is poised to revolutionize the supply chain, making it more efficient, responsive, and resilient than ever before. So hold on to your hats, America—the robots are coming, and they’re here to help. Or at least we hope so!

Regenerative agriculture involves improving soil health and water quality, as well as protecting the environment by reducing greenhouse gas emissions. The companies tout the impressive gains that can come from regenerative agriculture:

PepsiCo and Walmart today announced a 7-year collaboration to pursue $120 million worth of investments focused on supporting U.S. and Canadian farmers in their pursuit to improve soil health and water quality. By establishing and scaling financial, agronomic and social programs, it aims to enable and accelerate the adoption of regenerative agriculture practices on more than 2 million acres of farmland and deliver approximately 4 million metric tons of greenhouse gas (GHG) emission reductions and removals by 2030 – roughly equivalent to the amount of electricity needed to power 778,300 homes for one year.

Rather than a one-size-fits-all endeavor, the two companies are taking a pragmatic approach, with the program being voluntary and offering farmers flexible options.

“Successful sustainability starts and ends with trust. At PepsiCo, we work very hard to earn the trust of the farmer so they understand that we are investing in their legacy, and they can hand their farm down to the next generation,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. “Farmers know their business better than anyone else, and what we hear from them is that for regenerative agriculture to make business sense, three things need to happen. They need economic support, social and cultural support, and agronomic support. This strategic collaboration with Walmart will advance our shared goal to have farmers’ backs as they transform farming in a way that benefits the planet and people.”

“At Walmart, our sustainability strategy is built to make the everyday choice the sustainable choice for our customers,” said Jane Ewing, Senior Vice President for sustainability at Walmart. “This collaboration with PepsiCo is a great example of how we are prioritizing the expansion of regenerative agricultural practices among farmers across North America so that we can continue to make quality products affordable and accessible for customers. This collaboration aims to help elevate farmer livelihoods, engage them on how to more sustainably manage soil health, increase yields and create a model that others can mimic across other product categories, including encouraging additional investments in regenerative agriculture by other brands.”

Simon served as President and CEO of Walmart U.S. from 2010 to 2014, giving him a unique perspective on the retail industry. Rather than predicting doom-and-gloom for traditional retail, Simon believe technology has the ability to transform the industry and open all new possibilities.

Even something as simple as trying on clothes may be revolutionized by technology, such as virtual reality.

“Could we have virtual changing rooms so that you can just scan an item in a store with your phone and try it on yourself without actually having to go try it on?” Simon said on CNBC’s “Squawk on the Street.”

Simon believes successful retailers will combine online sales with a brick-and-mortar presence, and cites Target and Amazon as two examples of companies that are making it work.

Walmart revolutionized the retail market thanks to its focus on logistics, fulfillment, and delivery. The retail giant is looking to make money off of its innovative solutions by selling fulfillment and delivery solutions to other retailers and teaming up with Salesforce to make it happen.

“Through this partnership, retailers can leverage the same innovative and scalable technologies that power Walmart’s pickup and delivery experiences,” said Anshu Bhardwaj, senior vice president, technology strategy and commercialization, Walmart Global Technology. “The same technology that powers Store Assist has enabled Walmart to fulfill over 830 million orders across over 4,700 Walmart stores. Together with Salesforce, retailers can scale their business and deliver the personalized, convenient experiences shoppers expect.”

“Salesforce is thrilled to partner with Walmart as it transforms its business and further expands into the digital technology market,” said Tyler Prince, Executive Vice President, Alliances & Channels, Salesforce. “Through this partnership with Salesforce, Walmart can grow its business in new ways by productizing its proven retail processes – empowering other retailers to create new and personalized experiences for their customers.” 

Walmart says retailers will be able to take advantage of three major features, including Buy Online and Pick Up In-Store (BOPIS), use Walmart GoLocal to manage local deliveries, and take advantage of Salesforce Commerce Cloud and Order Management to manage the entire omnichannel shopping experience.

“Shoppers continue to expect brands to deliver highly connected and frictionless experiences across physical and digital touchpoints. In fact, 1 in 5 online orders placed the weekend before Christmas were picked up in store,” said Rob Garf, vice president and general manager of retail, Salesforce. “With the combined power of Walmart and Salesforce, retailers can drive success with best-in-class technology to advance their omnichannel capabilities, drive efficiency and ensure that every purchase quickly gets into the hands of the shopper – no matter where they are.”

“We can’t wait for customers to use Walmart+ as a way to keep more time on their calendars and money in their pockets,” said Janey Whiteside, chief customer officer, Walmart. “We designed Walmart+ to be the ultimate life hack for customers, pulling together benefits they told us would be most helpful to them today and in the future. Its usefulness will only grow from here.”

The initial list of Walmart+ benefits is below. The company says that the list of benefits will continue to grow over time:

• Unlimited free delivery: In-store prices as fast as same-day on more than 160,000 items from fresh produce, to milk, eggs and bread to tech and toys to household essentials. This service was previously known as Delivery Unlimited – a subscription service that allows customers to place an unlimited number of grocery deliveries for a low, flat yearly or monthly fee. Current subscribers will automatically become Walmart+ members.
• Scan & Go: Unlock Scan & Go in the Walmart app – a fast way to shop in-store. Using the Walmart app, customers can scan their items as they shop and pay using Walmart Pay for a quick, easy, touch-free payment experience.
• Fuel discounts: Fill up and save up to 5 cents a gallon at nearly 2,000 Walmart, Murphy USA and Murphy Express fuel stations. Sam’s Club fuel stations will soon be added to this lineup.

Bill Simon, former CEO of Walmart, discusses the launch of Walmart+ designed to take on Amazon by combining free delivery of groceries and general merchandise within a paid subscription service:

Walmart+ Goes Head To Head With Amazon

Walmart has long coveted a subscription service to go head to head with Amazon. They tried three or four times but this one is different. Walmart+ combines both their grocery and their general merchandise strength which is really trying to recreate the supercenter online through a subscription service. If they can use the frequency of their food business to also help sell their general merchandise line they can mix it out better and hopefully get to profitability sooner.

Retail has actually been better (this last quarter) than most people have expected. It’s not been even. There have been categories and retailers who have struggled. By and large, its help up pretty well. The pandemic accelerated digital ecommerce development by five to ten years. If you were not up to speed on that or didn’t get up to speed very quickly you would be behind. As we head into the fall it will be really interesting to see how it goes.

Holiday Selling Season Uncertain

Typically, Black Friday and Cyber Monday, that weekend has been really critical to the selling season. If you missed that it would be very difficult to have a really good holiday selling season. With the delayed openings now and Thanksgiving not on the line, the focus is going to be online and there won’t be as many in-person Black Friday deals. It’s going to be difficult for retailers to make up all that volume online. The holiday selling season is going to be a bit uncertain.

I’m really speaking from the consumer perspective when I say that digital ecommerce accelerated by five to ten years in the last six months. It accelerated at that pace and people had to head in that direction. That is likely where retail is going to head but it is going to still be a mix. The vast majority of retail will remain brick and mortar but ecommerce will take a larger role in the facilitation by online pickup in store. Customers are now completely blending the omnichannel retail experience.

The Amazon Effect: Digital Sales Rule!

There’s also been really a change from an investment standpoint. This has been really more the Amazon effect than anything I can think of. Five years ago, it used to be, grow your profit faster than your sales and your share price would move forward. Now, if you’re not growing digital sales at a hyperactive rate it’s really hard to get a good valuation on your company. Walmart is a great example of a retailer employing this strategy.

They’ve invested a ton of money, almost a third of their operating income they’ve given up in order to build an ecommerce business. Yet, investors have rewarded them by buying their stock. It’s near historic highs.

AI is the new darling of the tech industry, with OpenAI, Microsoft, and Google leading the way. Walmart may not be the first company that springs to mind in the context of AI, but Bloomberg is reporting that the retailer is using it for vendor negotiations. The company has tapped Pactum AI, using its chatbot for the process.

“We set the requirements and then, at the end, it tells us the outcome,” says Darren Carithers, Walmart’s senior vice president for international operations.

Carithers went on to tell Bloomberg that the AI has reduced negotiation times from weeks or months to mere days. What’s more, the bot has saved an average of 3% on contracts, with a 68% success rate in reaching deals.

Perhaps most surprisingly, three-quarters of the company’s suppliers prefer negotiating with the AI.

“Some really like it and are like, ‘This is the best way to do it,’” Carithers continued. “But I would relate that to people using self-checkout in stores. Some customers love it, but guess what: Some customers want to go to a manned checkout and see a person.”

The AI is currently only being used to negotiate contracts for equipment the company uses, such as shopping carts, and not goods being sold on shelves. Given the success Walmart is experiencing, however, it’s likely only a matter of time before AI negotiators are tasked with more responsibility.

Burt Flickinger, Managing Director of SRG, a consumer industry business consulting firm, discussed how Walmart is winning the retail wars in an interview on Fox Business:

Walmart is the Roman Empire of Retail

This earnings report just reinforces its winning. Amazon is going sideways. This is a reenactment of the Punic Wars, Rome versus Carthage. Walmart is the Roman empire of retail. Like Hannibal and the Carthaginians, Amazon is starting to go the wrong way. Big win for Walmart today and they will accelerate that in the next two to seven years.

What’s doubly impressive, we talk to a lot of vendors and shoppers around the world, what the vendors are saying is Walmart is reinvesting all the PPA (price and promotional allowances) in lower prices. Lower prices normally mean lower margins and lower revenue. But in this case, the shopper is shifting to Walmart.

Walmart strategically saw all the land-based businesses like Payless and all the retailers from toys to sporting goods going out of business. They had great sales on land and not so good online. Walmart is winning both ways. Amazon, with all the trouble they’re having with Whole Foods, can’t capitalize. Walmart is running the table.

This Says it All for US Retail

This says it all for US retail. The well capitalized highly capable retailers are winning and if it’s a one man show, like Bezos running the show, you could be Alexander the Great, you could be Hannibal out of Carthage, but one general isn’t going to win a war. Recent (lower) retail sales numbers were a combination of a couple things. One is Jerome Powell scared the market, especially high to mid-end, didn’t spend as much. Also, consumers were a little bit scared toward the end of the year. Walmart, off price, low price, did very well, but full price full service struggled and that’s why the numbers were bad.

Walmart comp sales increased 4.2 percent, just like Steve Jobs and Apple with their great campaign Think Different with Muhammad Ali, Walmart is thinking different with Doug McMillon. It’s evolved from a company of family management to professional management. Walmart had 40 percent growth online.

Walmart Ads Are Really Connecting

Before, Walmart looked at advertising as an expense. But as Jerry Della Femina said, most of the Super Bowl ads were pretty pathetic. Walmart was one that stood out because it advertised Walmart online and Walmart in-store. The Walmart ads are really connecting with consumers, a United Nations of consumers.

They’re reaching everybody around the world with better prices and better service. Doug McMillon has invested in inventory and has invested in store staffing, first to raise wages with some push from the UFCW. They are hitting on all cylinders. The biggest problem now is they can’t handle all of the volume they are seeing on the weekends.

Companies continue to develop AI at an astonishing pace, with it being used in everything from chatbots to workplace automation. The latter is particularly concerning to many workers who fear AI will eventually take their jobs.

McMillon says that’s not the case, despite Walmart increasingly relying on automation.

“We see the opportunity to accelerate that progress with investments in supply chain automation which includes data, software, and robotics,” McMillon said at an investor event. “We’ll improve item location accuracy, in-stock levels, unit economic costs, and delivery speed. The combination of sales growth, productivity improvements, and business mix changes will enable us to grow profitability faster than sales.”

“A key part of the strategy is automation, like you saw yesterday,” added John Furner, President and CEO, Walmart US. “If you ask “Why automate?” The answer is it helps our customers and our associates and our business. Automation helps our customers with better accuracy, availability, and speed.

“Automation helps our associates. It results in less manual labor. Over time, we believe we’ll have the same or more associates and a larger business overall. There will be new roles emerging that are less manual, better designed to serve customers, and pay more.”

The news will likely reassure employees about their job security and future roles within the company.

As CNN reports, Walmart doubled down on its commitment to its Chicago stores in the aftermath of George Floyd’s murder. The commitment was part of the company’s broader efforts to support racial equality. Just a couple of years later, and the company is confronting the economic realities of the decision, concluding it is no longer sustainable.

“The simplest explanation is that collectively our Chicago stores have not been profitable since we opened the first one nearly 17 years ago – these stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years,” the company wrote in a blog post. “The remaining four Chicago stores continue to face the same business difficulties, but we think this decision gives us the best chance to help keep them open and serving the community.”

“Over the years, we have tried many different strategies to improve the business performance of these locations, including building smaller stores, localizing product assortment and offering services beyond traditional retail. We have invested hundreds of millions of dollars in the city, including $70 million in the last couple years to upgrade our stores and build two new Walmart Health facilities and a Walmart Academy training center.”

The closures are a stunning turnaround after years of Walmart and local politicians working to help bring the big-box retailer to Chicago’s underserved communities.

The following stores are slated for closure by April 16:

• #5781 Chatham Supercenter, the Walmart Health center, and the Walmart Academy, 8431 S. Stewart Ave.
• #3166 Kenwood Neighborhood Market, 4720 S. Cottage Grove Ave.
• #5645 Lakeview Neighborhood Market, 2844 N. Broadway St.
• #5646 Little Village Neighborhood Market, 2551 W. Cermak Road

The company says the pharmacies at those locations will continue serving customers for up to 30 days.

For many tech workers, working for the likes of Microsoft, Meta, Google, and Amazon was a dream come true…until the dream came crashing down. As they move on to new opportunities, The Wall Street Journal is reporting that many of those who have been laid off are choosing jobs that emphasize stability over status.

“The majority of folks that have been laid off from big tech companies, they’ve been disillusioned,” said Chris Rice, a partner with Riviera Partners, an executive-search firm.

That disillusionment has given employees new opportunities with other companies, companies that offer them a sense of purpose they didn’t always have at their Big Tech jobs.

“As an engineer, I derive value from doing something useful,” said John Kew, an engineer who worked at Tableau Software. “In particular at a large company, it’s hard to feel that way.”

Smaller companies are benefiting as well, gaining access to a talent pool that would otherwise have been unavailable, snatched up by much larger companies.

“There’s a gold rush to capitalize on those opportunities and be at the forefront,” said Julia Pollak, chief economist with ZipRecruiter.

“They couldn’t compete with tech companies on comp packages for tech employees because they didn’t have the same stock value. That was a huge problem for them,” she added. “Now they’re like, ‘This is wonderful, we can actually hire again.’”

Companies outside the tech industry are similarly benefiting.

“We’re likely looking a little brighter these days than we might have before,” said Donna Morris, chief people officer at Walmart.

“Now, we’re seeing that they’re coming to us,” said Melissa Werneck, Kraft’s global chief people officer, of technology employees. “We’re seeing them knocking more on our doors.”

One thing is clear: The tech industry’s layoffs are having far-reaching consequences and will likely continue reshaping the job market for months and years to come.

Walmart currently partners with Volkswagen’s Electrify America to provide charging stations at its stores. As EVs gain in popularity, the retail giant is looking to deploy its own chargers, giving it more control over pricing and availability.

Vishal Kapadia, Senior Vice President, Energy Transformation, outlined the company’s plans:

With a store or club located within 10 miles of approximately 90% of Americans, we are uniquely positioned to deliver a convenient charging option that will help make EV ownership possible whether people live in rural, suburban or urban areas. Our goal is to meet the needs of customers and members where they live and open the road to those driving across the country. Easy access to on-the-go charging is a game-changer for drivers who have been hesitant to purchase an EV for concerns they won’t be able to find a charger in a clean, bright and safe location when needed.

What’s more, with our chargers located on site with our Supercenters, Neighborhood Markets and Sam’s Clubs, we can offer customers and members the convenience of being able to pick up essentials for their families or grab a bite to eat while they charge. And in line with our purpose, we aim to offer Every Day Low Price charging – helping ease transportation costs, still the second highest household cost for much of our country.

The company plans to deploy the new network by 2030, complementing the 1,300 charging stations it already has via its partnership with Electrify America.

Walmart revolutionized the retail market thanks to its focus on logistics, fulfillment, and delivery. The retail giant is looking to make money off of its innovative solutions by selling fulfillment and delivery solutions to other retailers and teaming up with Salesforce to make it happen.

“Through this partnership, retailers can leverage the same innovative and scalable technologies that power Walmart’s pickup and delivery experiences,” said Anshu Bhardwaj, senior vice president, technology strategy and commercialization, Walmart Global Technology. “The same technology that powers Store Assist has enabled Walmart to fulfill over 830 million orders across over 4,700 Walmart stores. Together with Salesforce, retailers can scale their business and deliver the personalized, convenient experiences shoppers expect.”

“Salesforce is thrilled to partner with Walmart as it transforms its business and further expands into the digital technology market,” said Tyler Prince, Executive Vice President, Alliances & Channels, Salesforce. “Through this partnership with Salesforce, Walmart can grow its business in new ways by productizing its proven retail processes – empowering other retailers to create new and personalized experiences for their customers.” 

Walmart says retailers will be able to take advantage of three major features, including Buy Online and Pick Up In-Store (BOPIS), use Walmart GoLocal to manage local deliveries, and take advantage of Salesforce Commerce Cloud and Order Management to manage the entire omnichannel shopping experience.

“Shoppers continue to expect brands to deliver highly connected and frictionless experiences across physical and digital touchpoints. In fact, 1 in 5 online orders placed the weekend before Christmas were picked up in store,” said Rob Garf, vice president and general manager of retail, Salesforce. “With the combined power of Walmart and Salesforce, retailers can drive success with best-in-class technology to advance their omnichannel capabilities, drive efficiency and ensure that every purchase quickly gets into the hands of the shopper – no matter where they are.”

According to KPTV, Walmart plans to close its remaining two Portland locations in late March.

“The decision to close these stores was made after a careful review of their overall performance. We consider many factors, including current and projected financial performance, location, population, customer needs, and the proximity of other nearby stores when making these difficult decisions. After we decide to move forward, our focus is on our associates and their transition, which is the case here,” a Walmart spokesperson said.

While the company officially blamed “financial performance,” Walmart has been struggling with record-breaking theft. Walmart CEO Doug McMillion warned months ago that the company’s financial performance was being negatively impacted as a result.

It’s unclear if crime was a factor in the company’s decision.

Walmart purchased Moosejaw in 2017 for $51 million as it was ramping up its online offerings. The purchase seemed like a good fit, given Moosejaw’s successful e-commerce presence.

Just a few years later, Walmart is now offloading the company, selling it to Dick’s — which is arguably an even better fit, given both companies’ focus on outdoor apparel and gear.

“We admire what Moosejaw has accomplished over the past 30 years as leaders in the outdoor industry and look forward to the opportunity to share insights and learn from one another,” said Todd Spaletto, President, Public Lands and Senior Vice President, DICK’S Sporting Goods. “We believe there’s potential to grow the Moosejaw business and provide compelling experiences and an expanded product assortment to its millions of loyal customers.”

The deal is expected to close March 2023. The financial terms of the deal were not disclosed.

Companies in various industries have been laying off workers left and right, but Walmart is going in the exact opposite direction, paying the workers it has even more. Instead of ranging from $12.00 to $18.00 per hour, the new pay scale will range from $14.00 to $19.00 per hour.

“First, starting next month, we’ll begin investing in higher wages for associates,” writes John Furner, president and CEO of Walmart US. “This includes a mixture of associates’ regular annual increases and targeted investments in starting rates for thousands of stores, to ensure we have attractive pay in the markets we operate. We expect these raises will bring our U.S. average hourly wage to more than $17.50. They’ll be reflected in March 2 paychecks.”

In addition to raising wages, the company is also adding higher-paid positions in its Auto Care Centers (ACC).

“Second, we’re continuing to invest in associates who run our Auto Care Centers (ACC),” Furner continues. “Last fall we created a higher-paying ACC coach role. Now we’re introducing a higher-paying ACC team lead position and elevating the ACC tech position to a higher pay-band that reflects the special skills needed for the role and its importance to our business.”

The company is also adding additional college degrees and certificates to its Live Better U (LBU) program, and the company will pay 100% of tuition and fees.

Finally, the company is also expanding its Associate-Driver Program, which pays supply chain associates to earn their commercial driver’s licenses. Once they become a Walmart truck driver, associates can earn up to $100,000 in their first year.

It’s refreshing to see a company investing more in their employees, including paying them more, rather than laying them off.

Walmart purchased Zeekit in 2021 and used its tech to unveil virtual fitting rooms. Customers could choose from a selection of models to see how clothing items look would look. The company is now expanding the service to let customers upload their own photo, giving a more accurate representation of how the clothes will look on them.

Called Be Your Own Model, the service uses technology originally designed for topographic maps. This allows the software to accurately and realistically approximate how an item of clothing will look, right down to the shadows and fabric draping.

Walmart is already delivering the new feature at scale, with some 270,000 items supported for a variety of brands, including Athletic Works, Avia, ELOQUII Elements, Free Assembly, Love & Sports, No Boundaries, Scoop, Sofia Jeans and Sofia Active by Sofia Vergara, Terra & Sky, Time & Tru, and The Pioneer Woman.

It’s also incredibly easy to use. If an item is enabled for virtual try-on, customers will see the “Try It On” button on the item page and have the option to view clothing on themselves (Be Your Own Model) or another model (Choose My Model). To use the Be Your Own Model feature, the customer will be prompted to take a picture of themselves within the Walmart iOS app. Once an image is saved, the customer will be able to view themselves as the model each time they use the virtual try-on experience.

Be Your Own Model is rolling out to the iOS Walmart app, but the company says an Android version will be available in the coming weeks.

According to Forbes, executives outlined the issues the company is facing, including $1.5 billion in unwanted inventory.

“If we could just wave a magic wand, we’d make it go away today,” said chief financial officer John David Rainey. “We’ve also cancelled billions of dollars in orders to help align inventory levels with expected demand.”

Executives believe it may take a couple of quarters to clear the additional inventory, much of which falls in the sporting goods, electronics, home, and apparel categories. In addition, changing buying habits as a result of the economy are also making it difficult to predict how customers will spend their money.

“We’ve seen more pronounced consumer shifts and trade-down activity” Rainey explained. “As an example, instead of deli meats at higher price points, customers are increasing purchases of hotdogs as well as canned tuna or chicken.”

Rainey indicates the company is struggling with a far sharper return to pre-pandemic norms than many companies expected, as well as a massive increase in inflation.

“As a backdrop, the shifts that we’ve seen in consumer behavior through the pandemic, shifting from in-store to online, along with big swings in the purchase of goods versus services. and then the reversion back to pre-pandemic norms has been sharp and difficult to predict. These trends have been exacerbated by inflationary pressure on the consumer that many of us have not experienced in our lifetime, the effect of which has recently changed consumption patterns in certain categories for us, notably general merchandise.”

Overall, Walmart’s situation should serve as a further warning regarding the state of the economy.