Imagine being able to shop at an online Wal-Mart. Low prices and various goods, discount shopping without the coupon clipping, life couldn’t get any simpler. This is precisely what Wal-Mart wants to do with the help of FedEx. Wal-Mart hopes to set up a partnership with FedEx so that consumers can shop at Wal-Mart even when there is no physical location in their area. Buyers would then go to any of FedEx’s multiple and secure sites and pick up their order.
Wal-Mart’s move into e-commerce is not surprising. E-commerce retail has grown exponentially over the past years. Furthermore, this will allow Wal-Mart to expand its operation with minimal protest from labor unions and without spending millions on physical capital. More people will now have access to Wal-Mart, and FedEx as a result will gain a more diverse consumer base. Unlike other online retailers, Wal-Mart’s plan insures that consumers’ purchases will be secured, giving the company competitive edge over their competition. Perhaps now more discount stores, like BJ’s or Sam’s Club, will follow in Wal-Mart’s footsteps.
http://online.wsj.com/article/SB10001424052748704416904575501790739176042.html?mod=relevancy
I find Wal-Mart's partnership with FedEx very surprising. I recognize the benefits of offering a physical pickup location, but I find a partnership with a single carrier very limiting. As for Wal-Mart's expansion in the E-commerce market, I believe that although very expensive at first, the move will quickly generate great amounts of revenue for the company as Wal-Mart is already a well established, branded retail chain.
ReplyDeleteIn many rural small towns in the United States, the most exciting thing to do is to drive an hour to a Wal-Mart location. I wonder if the ability to shop online would stop such a trend.
By Michael Milner
I think it is a great idea for Wal-Mart to move towards e-commerce and it is a great idea for two big successful companies like Wal-Mart and UPS to team up together. However, Michael makes a great point. While I believe people love driving hours to go shopping at Wal-Mart because it is the closet store around, many people will still be able to do this if they want a day long shopping spree. However, this is great for people who cannot afford to give up a day to go shopping.
ReplyDelete