To: CEO of Wal-Mart Stores, Inc.
From: Gaylord Paul Garcia
Date: February 16, 2014
Re: The future of Wal-Mart.
I. Bottom Line Recommendation
Expanding Wal-Mart’s online presence is the most important opportunity that will help position the company more strongly for 2014 and beyond.
Online retail and shopping sales has been growing consistently every year, not just in the US but worldwide. Not only does online shopping give customers more convenience, more variety, and more discreetness but it also gives customers better prices. While it is quite true that Wal-Mart has product variety and cheap prices – things customers want – the physical stores do not really give the convenience and discreteness that online retail and shopping does.
This recommendation is the most critical to address because online shopping is worldwide. With Amazon currently dominating the online shopping industry, and quadrupling their sales of $15 billion to $61 billion within just the past five years, it is no question that they have to be doing something right.
Online shopping is global.
II. Three Opportunities
1) Trend towards healthier and more organic foods
The trend towards healthier and organic foods is an opportunity that Wal-Mart can take advantage of. A recent survey shows that there has been a positive trend towards lower fat diets in the past decade. This data means that the general public is willing to improve their health and diet – a wide customer base Wal-Mart cannot ignore. Government and private sectors even made efforts towards guiding Americans to more healthful diets, through nutrition education and information efforts.
2) Growth of online retail and shopping
Hoover describes Amazon as the Earth's biggest everything store. If Wal-Mart improved its online presence and online store, Wal-Mart can easily be the next everything store. With Wal-Mart’s cheap prices for electronics, apparel and accessories, auto parts, home furnishings, toys, groceries, health and beauty aids, etc., it is implied that it can do greatly in online retail – specially since Amazon rings up more than 60% of sales from products that Wal-Mart already sells.
3) Popularity of membership discount retail