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Online Groceries Boost Walmart Earnings, Foot Locker Opens Digital-Focused Store, and Macy’s Improved Distribution

Online Groceries Boost Walmart Earnings

Department store juggernaut Walmart shared results for its fiscal second quarter that ended on July 26. The company reported total revenue of $130.38 billion, up 1.8% from last year. Cited as “a meaningful contributor to ecommerce growth” was Walmart’s online grocery business. The company now has more than 2,700 grocery pickup locations and more than 1,100 U.S. delivery locations. Groceries, along with same-day delivery for most U.S. stores, are also driving the company’s efforts to improve its ecommerce. “We’re making progress to improve the fundamentals of our traditional ecommerce business,” says Walmart CEO Doug McMillon. “We’re lowering our variable costs per unit, improving gross margin and increasing the number of monthly active users.”

What stood out to us?

Walmart now has more than 2,700 grocery pickup locations and more than 1,100 U.S. delivery locations. Play the long game.


Foot Locker Partners with Nike for Digital-Focused Store

Footwear retailer Foot Locker is blending ecommerce into the retail shopping experience. The company has opened a 9,000-square-foot store in New York City that links with Nike to offer digital, app-based services. The “Power Store” encourages shoppers to use the Nike app on their smartphones for in-store features such as the ability to scan barcodes with their smartphone to check in-store inventory, learn more about products, and reserve online or pick up in Nike lockers at the Foot Locker store. The Power Store will also have a vending machine that unlocks by having a NikePlus members scanningQR codes to receive a new, free product from the machine, such as socks. Foot Locker is planning on opening other digitally focused stores, but has yet to outline specific plans.

What stood out to us?

Footlocker should purchase a headless platform to power the vending machines as unique stores and catalogs.


Macy’s Improves Distribution with Google Cloud

Although big department store chains are struggling to compete with ecommerce, Macy’s is adapting with new changes to its distribution strategy. Macy’s has started working with Google Cloud to power its distribution center in Columbus, Ohio, which will assist in managing merchandise, keeping items in stock, and ensuring deliveries arrive on time using data analytics and algorithms. Google Cloud will also assist in helping Macy’s figure out how to better ship large, bulky items such as furniture, a key challenge the department store has been trying to solve. “This is a muscle we are building,” says Naveen Krishna, Macy’s chief technology officer. “We can then extend Google Cloud to other parts of Macy’s. This is solving a key problem for us.”

What stood out to us?

Google finds a new way to get into the ecommerce game.


In the headlines

  • Itchy-Commerce: Eco-friendly wool shoe company Allbirds is entering the apparel business.
  • Shop like it’s 1999: Companies are reviving trends from the ‘90s for young consumers.
  • The Right Aid: Digital healthcare organization Rite Aid names pharmacy industry -veteran Heyward Donigan as new CEO.
  • That is Farfetched: Shares of luxury online retailer Farfetch took a plunge despite acquiring the megabrand New Guards.

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