“‘In introducing Pickup Discount, Walmart is not only reducing the hit to its profits by minimizing delivery costs, but also further setting itself apart from Amazon by connecting its purchase data across all channels, as well as using physical locations to its advantage as local distribution centers, says Sarah Engel, chief marketing officer at DynamicAction, a Redwood City, Calif.-based provider of analytics solutions. This is something Amazon is not positioned to do.
‘As retail is in a significant transformation mode,’ she says, ‘there are a few key truths that omnichannel retailers must acknowledge: They must be able to leverage the strength of their physical stores to their benefit and not let them become a financial detriment. They must have connected data across channels and understand their customer patterns to drive larger and more profitable sales in-store and online. And they must realize that the convenience their customer now expects through their delivery strategy inevitably impacts their bottom line.'”
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