Walmart targets e-commerce for growth
By Jonathan Birchall in New York
Published: June 4 2010 18:45 | Last updated: June 4 2010 18:45
Mike Duke, chief executive of Walmart, on Friday placed mobile technology and e-commerce at the centre of the global expansion plans of the world’s largest retailer, as he set a long-term goal of serving more than a billion customers a week.
Mr Duke told an audience of 16,000 employees and shareholders at the annual meeting in Arkansas that technology could help Walmart grow to reach that goal during the next 20 years, increasing from the 200m customers it currently serves in a week.“Think about giving everyone with a mobile device the platform and the information they want to buy, the exact product they want at the absolute best price anywhere in the world,” Mr Duke said, in his most wide-ranging speech since becoming chief executive in February last year.
The retailer operates significant e-commerce sites in the US, UK and Brazil and has recently stepped up its investment to develop a global e-commerce platform that will include mobile capacity. It is also expanding its online operations into new, larger headquarters near San Francisco.
Mr Duke admitted the retailer had lagged behind some rivals in its embrace of global e-commerce. It needed “an even deeper understanding of the role of mobile technology throughout the world, including in developing countries”, he said, adding that “building the very best web site will be just as important as getting our store formats right in the future.”
Walmart, along with other US consumer companies, is becoming increasingly active in social media initiatives. A live video feed of this year’s shareholder’s meeting was web-cast alongside a live stream of messages from attendees on websites such as Twitter and FourSquare, as well as photographs posted to Flikr.
Mr Duke also said that digital technology meant the retailer was entering an “era of price transparency”, which could favour Walmart’s low-price model. He said the company would seek to “widen the price gap” with competitors.
The presentation also underlined the need for the retailer to become “a truly global company”, playing “an even bigger leadership role on social issues that matter to our customers.” This was a theme first articulated by Lee Scott, Mr Duke’s predecessor.
During the week’s series of company events, Walmart also showed a continued interest in global acquisitions, with a presentation on its Moscow office’s efforts to explore opportunities in Russia. Walmart, which set up an office in Moscow in 2008, is said to have been in fresh talks over the possible acquisition of a share in Lenta, a Russian hypermarket chain that has been a regular target of takeover speculation. It also announced on Friday that its board had approved a $15bn share repurchase programme.
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