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Walmart fortifies its position as a one-stop shop (WMT)

Walmart eCommerce Sales Growth
Walmart eCommerce Sales Growth

BI Intelligence

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Walmart announced it would be bringing FedEx shops into 500 of its US stores, according to CNBC.

Customers will have access to the FedEx printing, packing, and shipping services, and packages will be held for customers for up to five days.

Each FedEx store will be around 450 x 750 square feet and will be staffed by a total of about 2,000 FedEx employees. This is a huge perk for customers who are concerned about having deliveries stolen, and it adds convenience because they can pick up packages while running errands at Walmart.

The retailer simultaneously revealed that it will be adding assembly services to more than 2,000 stores in the US, Retail Dive reports. The retailer is partnering with Handy, a company that provides odd-job services, to help customers with tasks like TV mounting and furniture assembly. Customers will be able to schedule appointments from 7 a.m. to 11 p.m., and will pay varying prices for the services.

The FedEx partnership will allow Walmart to capitalize on the successful store-within-a-store concept, and could possibly lead to more in-store sales. JCPenney used this concept when it brought Sephora into its stores, and the cosmetics company quickly became one of JCPenney's best-performing departments. For Walmart, partnering with FedEx to capitalize on the store-within-a-store concept is a similarly sensible move.

Packaging and shipping are the most-wanted services for Walmart customers, according to a recent survey conducted by the retailer, reported on by CNBC. FedEx could help Walmart increase in-store sales because customers using its services may choose to run their errands at Walmart instead of at a competing store due to the convenience.

Meanwhile, adding Handy’s services may help Walmart increase its sales of home goods, electronics, and furniture. Furniture assembly can be time-consuming and tedious, which may be a deterrent to consumers. Moreover, furniture retailer Ikea already offers such services through its subsidiary, TaskRabbit, so it's critical for Walmart to offer similar services to remain competitive because Ikea and Walmart have similar pricing.

These services will ultimately help Walmart become more competitive with Amazon, as it's becoming more of a complete one-stop shop for customers. Walmart already provides money services, vision centers for eye exams and prescription glasses, pharmacies, and grocery pickup. These added services streamline the customer shopping experience, and may make it more convenient to shop in-store than online, turning Walmart’s physical presence into an advantage. For instance, a customer needing to go into the store for printing services or an eye exam may find it more convenient to do all their shopping then and there, rather than through a separate online order.

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