Paper Example. Brick and Mortar Outlets

In the past ten years, retail shopping has undergone drastic changes from dominantly physical (brick and mortar) outlets to a combination of both online retail and physical retail thanks to technological developments in the internet sphere. In 2000, online sales accounted for 7% of all retail sales but that number would later increase to more than 24% in 2018 (Keyes, 2018). Although brick and mortar outlets still account for the majority of retail sales, current trends show that their dominance has been dwindling. Companies such as Walmart, which is the biggest brick and mortar outlet in America, has been implementing changes aimed at dealing with the changing market. Therefore, this paper entails a description of how Walmart has navigated and remained resilient in the changing market environment.

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In the beginning of the 21st century when Amazon was hardly known as a big-time online retailer, Walmart dominated the retail sector even though it offered products with a relatively higher price by 3%. That trend continued upto 2015, when retailers started to notice a drastic change in consumer way of shopping. For a long time, Walmart has gained a reputation of a low-price physical retailer that has presence in every 50miles radius of an American (Keyes, 2017). However, the entrance of Amazon in the arena threatened this reputation but the reduction in prices has enabled Walmart to compete with Amazon in the online retail market.

As the retail market continues to undergo changes, Walmart has implemented strategies aimed at enabling the giant keep up with the competition and maintain the lead in the market. Such changes include the provision of the grocery pickup and grocery delivery. According to statistics, an average American shops for groceries once a week (Clement, 2017). Years ago, that happened in physical shopping but due to changes in the market, Walmart has implemented ways that increase convineience of grocery shopping without leaving the comfort of their car. This service is currently offered in its 2,146 stores and more are currently in line. Also, the grocery delivery service is perhaps the most revolutionizing which has a reach in 35 cities across the U.S (Corporate Walmart, 2019). Other services offered include the Walmart Pickup Towers

In conclusion, the drastic changes witnessed in brick-and-mortar outlets in the past five years are expected to continue as technology advances and consumer needs change. That will require retail giants like Walmart to accelerate their shift from just physical retailers to a combination of both online and physical retailers. Although Walmart currently has the lead in this market, competition is fast catching and its competitiveness will be dependent on its innovativeness and creativity in the future.

References

Corporate Walmart. (2019, January 15). Top Ways Walmart is Changing How Customers Shop. Retrieved from https://corporate.walmart.com/newsroom/2019/01/15/top-ways-walmart-is-changing-how-customers-shop

Clement. (2018, May 10). Topic: Online shopping behavior in the United States. Retrieved from https://www.statista.com/topics/2477/online-shopping-behavior/

Keyes, D. (2017, November 28). Walmart is using its unmatched brick-and-mortar network to compete with Amazon. Retrieved from https://www.businessinsider.com/walmart-brick-and-mortar-amazon-2017-11?IR=T