Innovation of the Week is a subscriber-only series highlighting retail initiatives that have caught the eye of our team. Every week, we will bring you new ideas and case studies that link to the trends in our Retail Horizon 2024 reports – across consumer, technology, sustainability, and economy, policy and industry.
What is it?
Walmart is investing to expand its artificial intelligence (AI) and drone delivery capabilities as it leverages technology to improve customer experience.
With the largest drone delivery footprint of any US retailer, Walmart now covers 75% of the Dallas–Fort Worth area in partnership with providers Wing and Zipline, reporting that it sees “demand is real” for the service.
A new generative AI-powered search experience was introduced on iOS, allowing customers to search across categories for more relevant results using specific use cases, for example, ‘football watch party’.
Separately, in fashion, Walmart’s Shop with Friends social commerce platform uses augmented reality to enable customers to create and share virtual outfits with friends.
Why does it matter?
Walmart has outlined its aims this year to seamlessly integrate online and offline as part of a future adaptive retail strategy focused on customers, workforce and society.
During a keynote speech at the Consumer Electronics Show, Walmart chief executive Doug McMillon unveiled how some of the latest technologies will enable the world’s largest retailer to deliver a new type of commerce that is customer-centric, interconnected, frictionless and consistently exceeds expectations.
Ongoing technology innovation is being prioritised to benefit customers, staff and society.
“We build technology to serve people and not the other way around… today, more than ever, advances in technology make it feel like anything is possible”
Doug McMillon, Walmart
Strategic implications
Adaptive retail leveraging new technology will be a priority in 2024 as leading retailers strive to remove friction and provide personalised and relevant brand experiences. Walmart will continue to challenge Amazon as competition intensifies.
Winning strategies
- Elevated customer experience
- AI for productivity and engagement
- Focus on innovation
Retail Horizon 2024 is Retail Week’s exclusive strategic toolkit for subscribers.
Across four in-depth reports, Retail Week research director Lisa Byfield-Green and our team of analysts explore the most significant trends that will shape the sector in the year ahead across consumer, technology, sustainability, and industry, economy and policy.
No comments yet