Walmart Stores Inc. (WMT) has made shopping easier for its customers. In an effort to make up for the low in-store traffic, the retail giant has decided to expand its online initiative through “Pick-Up-Today.” New York Times reports that this program will enable its customers to shop online and save their time by doing away with the mad hunt at the company’s football field sized stores.
This facility allows customers to submit orders online and pick up their items a few hours later in their local store. “Pick-Up-Today” is expected to be operational nationwide by June 2011, following which customers can select from 40,000 items online. Customers will receive a text message or e-mail alert once their order is ready, which usually takes about four hours.
The program will include about 40,000 items like electronics, toys, home décor and sporting goods. As of now, it does not include groceries though company is hopeful about its inclusion at a later stage.
The program is similar to those already launched by Sears Holdings Corporation Inc. (SHLD) and Nordstrom Inc. (JWN). Nordstrom recently combined its inventory with the online shopping program, so that if the online stockroom is out of a jacket, a store that has it can ship it to the Web customer. Best Buy Co, Inc. (BBY) offers both store pickup and “ship to store,” where items are shipped free to a local store.
The initiative comes in the backdrop of continuous declining in-store traffic and stiff competition meted out by dollar chains and drug stores, which often are more convenient for shoppers. The company recently announced that it plans to add hundreds of small stores, to be called Walmart Express in the second quarter of this year.
Part of the proposed express stores will constitute the “Neighborhood Markets,” which vary from 25,000 square feet to 70,000 square feet. Some of the new stores will adopt the company’s latest format “Walmart Express,” which are about 15,000 square feet; and another new concept called “Walmart on Campus” will also be seen. The company also has plans to launch “ship to store” service for its customers this year.
Currently, we maintain a Neutral rating on the stock. Further, Walmart holds a Zacks #3 Rank, which translates into a short-term Hold rating.
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