Wal-Mart Stores Inc. is rolling out new features for its mobile application and standing by its shipping policies to integrate online and in-store shopping for the coming holidays.
In a conference call Thursday outlining its strategies for the Christmas season, the world's largest retailer unveiled plans to launch a mobile check-in and expanded wish-list features for its Wal-Mart app starting Sunday. Wal-Mart also said it won't follow in the path of other retailers such as Best Buy and Target with free shipping on all holiday items, instead sticking with its policy of offering free shipping only for orders of $50 or more.
Executives said the retail giant's goal is to provide convenience across its network during a season in which consumers are projected to spend $630.5 billion.
"We know how important it is because there are more than 1̶1̶4̶ ̶m̶i̶l̶l̶i̶o̶n 140 million* people counting on us every week to help make the holidays special," said Judith McKenna, chief operating officer for Wal-Mart U.S. "We've been working hard since the beginning of the year to make that happen."
The mobile check-in feature will allow customers to inform the retailer of their arrival to reduce in-store pickup times for online orders. Fernando Madeira, president and chief executive officer of Walmart.com, said the feature has been tested in Sam's Clubs and has led to reduced wait times.
Wal-Mart also will introduce an expanded wish list for the mobile app, building on a function that produced 1.5 million users last year. The expanded feature gives customers the ability to scan items in the store, send them to a wish list and share with others.
"We're making the digital and store shopping experience more seamless than ever, which is important when we expect mobile shopping at an all-time high this year," McKenna said.
Research from the National Retail Federation indicates that average consumers plan to conduct 46 percent of their holiday shopping online this year, up from 44.4 percent last year.
The study also showed that 21.4 percent of smartphone owners will use their devices to purchase holiday merchandise, which is the highest level recorded.
Wal-Mart predicts mobile use to increase during the holiday season, expecting 210 million visits to use the app in November and December. Madeira also said 70 percent of the traffic on Walmart.com was from mobile users last year and projected 75 percent this year as part of what he called the "most integrated holiday shopping experience ever."
Wal-Mart stressed an integrated experience several times during Thursday' conference call, referring to a network that includes millions of items available online and 4,500 stores that double as pickup locations.
The company plans to take advantage of those offerings during the holiday season even though it won't offer free shipping on all home deliveries. Instead, Wal-Mart is banking on success with its pickup option.
When asked if the plan puts Wal-Mart at a disadvantage, Madeira noted that the retailer's pickup option is always free and in some cases orders may be available the same day. He said the added mobile features will only add to the convenience for shoppers.
"We're going to make pickup way easier for our customers," Madeira said.
Wal-Mart's holiday emphasis on mobile orders and pickup services was announced two weeks after CEO Doug McMillon told analysts earlier this month that the retailer sees customers who shop online and in-store as the target audience for Wal-Mart.
McMillon noted that in-store-only customers spend an average of $1,400 a year and online-only shoppers are spending an average of $200 annually. Shoppers who are spending money online and in stores are spending $2,500 a year on average, leading McMillon to say Wal-Mart will "win on our unique combination of assets."
Neil Ashe, chief executive officer of global e-commerce, also told the Democrat-Gazette during an interview in San Bruno, Calif., earlier this week that he believes the line between forms of commerce is blurring and will continue to blur. Much of the work being done at @Walmart Labs in Silicon Valley is geared toward integrating the two shopping experiences.
"The customer is going to make that decision," Ashe said. "She is going to have integrated that experience. We are building that digital relationship with her so we can deliver an experience, whether she's in a store, on a device or on the couch, in the car, at the office, whatever.
"Blending those options is essential to our future success."
Wal-Mart did not provide any plans for Black Friday (the day after Thanksgiving) or Cyber Monday (the Monday after Thanksgiving). Details will be available in a couple of weeks. But the retailer -- which plans to hire about 60,000 seasonal workers for the second straight year -- did announce plans to provide consistency in pricing throughout the holidays.
Steve Bratspies, chief merchandise officer for Wal-Mart U.S., said the company will kick off the holiday shopping season Sunday with discounts on items that will last the entire Christmas shopping season.
Wal-Mart offered price rollbacks on 20,000 items last year, but Bratspies did not provide an exact number for the current season Thursday. He said the items will be "very evident" and that the retailer plans to cut back on short-term deals and eliminate promotions that could be confusing to customers.
"It will be a highly competitive season. There's no doubt about it," Bratspies said. "But we feel really good with how we're positioned. All the new capabilities that Fernando's team is bringing to the table. Judith has the stores ready to go. We've been planning this month by month for the entire year."
Business on 10/30/2015
*CORRECTION: Judith McKenna, chief operating officer for Wal-Mart U.S., said there are 140 million people counting on the retailer every week to help make the holidays special. The number was incorrect in an earlier version of this story.