As consumers’ retail expectations rapidly evolve, Walmart is looking to omnichannel technology to revitalize the brick-and-mortar journey.
Cedric Clark, EVP of store operations at Walmart U.S., spoke with PYMNTS’ Karen Webster on Oct. 31 about how the retailer is leveraging digital tools to keep the physical store from becoming obsolete as consumers seek engaging on-site experiences.
“[The] papers 15, 20 years ago … talked about retail Armageddon. The physical stores were dying,” Clark noted, adding that stores have had to evolve to become a more immersive, sensory experience. “Now, we can look at that in a digital way, and now we [take] data to move an associate in the most efficient way. … The physical store still plays a role, and as you change the capabilities within it, you can still have the treasure hunt, and you can still have the serendipity of the humanity.”
Indeed, consumers for their part want both the digital and the physical. PYMNTS Intelligence research from “2024 Global Digital Shopping Index” reveals that 71% of consumers still engage with stores at some point in their shopping journey, and roughly 4 in 10 are Click-and-Mortar™ shoppers, using digital technologies to create more convenient on-site experiences.
A central aspect of Walmart’s approach is ensuring that customers have access to accurate, real-time product information. The retail giant has invested in augmented reality (AR) tools, empowering associates to manage stock levels and shelf replenishment. One such tool, for instance, enables associates to scan items in the back room to determine whether a product should be moved to the sales floor or remain in storage.
Clark explained that these innovations allow associates to make informed decisions quickly, resulting in a more seamless customer experience.
“We’ve made the investments in the technology and in innovation and in the hardware that positions associates … to become more efficient and productive in making the customer experience better,” he said.
This is “not an easy feat” at a retailer with such high foot traffic, with more than 100 million customers moving through the company’s stores each week. Amid this crunch, Walmart’s digital upgrades have not only enhanced stock accuracy but also strengthened its associates’ ability to manage in-store and digital orders with greater ease.
Walmart has unified its digital infrastructure, transitioning from two separate apps — one for groceries and one for general merchandise — to a single, integrated platform. This unification has enabled Walmart to collect customer data in one place, providing insights that drive operational decisions and improve the customer journey.
“That was a significant step change in how we accelerated our digital experience,” Clark recalled.
By consolidating app interactions, Walmart connects associates and customers more efficiently, optimizing the fulfillment process and facilitating a better overall shopping experience. For instance, Walmart now allows customers to preselect their preferences for substitutions if a chosen item is unavailable, which reduces friction during fulfillment. This move toward predictive personalization aims to create what Clark calls a “perfect order” by anticipating customer needs and streamlining associate workflows.
Beyond digital integration, Walmart has reimagined its merchandising strategy to foster a more inviting and dynamic shopping environment. Instead of a uniform setup, Walmart has adopted what Clark dubs a SWAS (store-within-a-store) model, breaking down its sprawling retail spaces into smaller, manageable sections that associates can oversee individually. This setup allows for a more personalized approach, with associates taking more ownership of specific departments.
A revival of the “VPI” (Volume Producing Item) program underscores this approach. The VPI initiative empowers associates to select high-potential items, such as seasonal or unique products, and creatively showcase them in stores. By providing autonomy to individual store managers and associates, Walmart aims to nurture an atmosphere that encourages innovation and local responsiveness.
This approach also aligns with Walmart’s overarching goal to enhance the in-store experience, giving customers a break from their daily concerns and a sense of connection. Clark describes this ambiance as a way to “forget your worries,” allowing customers to experience a shopping environment that’s colorful and engaging, while also feeling curated and intimate.
“You’ve got to have fun. … When you walk in and you see pumpkins at the front of the store or you smell the pumpkin spice or the cider … it creates this energy.”
Another crucial component of Walmart’s digital strategy is its self-service focus. Take, for instance, its “Scan & Go” feature for Walmart+ members, whereby these paid subscribers scan items as they shop and complete checkout through their phones. This enables them to bypass the checkout line, speeding up the shopping process and adding a layer of convenience for time-conscious customers.
“We’re continuing to look at it and evolve it to a point to where we can deliver, in the future, a frictionless experience,” Clark said.
While adoption of Scan & Go has been promising, Walmart is exploring further enhancements. Clark hints at potential future applications of computer vision and other technologies toward improving the checkout journey.
These kinds of initiatives are key, as research finds that nearly three-quarters of consumers feel positively about automating the checkout experience.
Walmart’s evolution is as much about flexibility as it is about technology. The retailer aims to blend physical and digital elements into a seamless shopping experience that feels intuitive to customers, whether they’re in-store, online, or both. Clark characterizes Walmart’s vision as moving beyond “digital and physical” distinctions, focusing instead on delivering a unified experience that prioritizes convenience and value.
This transformation extends to the physical layout of Walmart stores, where a redesigned merchandising strategy seeks to introduce moments of serendipity that customers might not find in a purely transactional online experience. By providing a diverse array of shopping experiences — from Scan & Go to surprise product displays — Walmart aims to capture the spontaneity and excitement that has long defined brick-and-mortar shopping.
“The journey evolves as the customer evolves,” Clark said, “and the only thing constant is change.”
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