Shopping at Walmart just got a lot more convenient for the common household by growing into the e-commerce industry. Customers in the United States are able to purchase food online from Walmart, and Canadians will soon be able to exercise this power by being able to purchase non-perishables online, with no additional charge for delivery. Walmart has high hopes for meeting customers’ needs with the addition to the e-commerce grocery industry, with hopes of expanding into fresh and frozen offerings.
Adopting a broad cost leadership strategy allows Walmart to sell products at average and affordable prices and provides consumers with a wide variety of products.
This new strategy may be more convenient for seniors and people who are unable to go to a grocery store to shop, but it also poses several risks. If people simple shop online for their groceries, Walmart may suffer losses in other products. Usually when people go to the store they pick up extra items they may not need because of their strategic placement in the store. As well, Walmart is offering free delivery through the joint cooperation of Canada Post, which could increase their costs in the long run. Only time will tell if Walmart’s entrance into the e-commerce industry will prevail to be beneficial.