Substantial savings on costs
Automated click and collect pickup solution
is 80% more effective than any manual click and collect pickup service.
holds up to 500 items but has only 5,4 m² footprint
- Automated self-service pickup reduces parcel handling costs
- In-store click and collect pickup reduces last mile delivery costs
Increased customer experience
Mark Ibbotson, the executive vice president of Central Operations for Walmart U.S., said at the 2018 Shoptalk conference that the NPS score of the stores with Pickup Towers grew 500 basis points. The NPS score is used as a proxy for gauging the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.
In the race with Amazon
90% of Americans live within 10 miles of a Walmart store, and they serve more than 140 million customers a week. By launching additional omnichannel initiatives aimed at blending its physical and digital channels, Walmart can better leverage its massive brick-and-mortar footprint to compete with Amazon.
Cost savings found through click and collect solutions have also helped Walmart to develop discount programs, like Pickup Discounts, to combat Amazon’s Prime membership model.
Increased foot traffic and sales
In-store click and collect pickup converts online traffic to in-store visits. Mark Ibbotson, executive vice president of Central Operations for Walmart U.S. said at the 2018 Shoptalk conference that stores with
(aka Pickup Towers) experienced an increase in in-store sales.
A study on consumer buying trends in 2017 holiday shopping season also showed that 40% of shoppers used click and collect and 90% of them bought additional items once in the store.
More e-commerce revenue
In April 2018, Walmart announced Pickup Discount, a price reduction on eligible, online-only (non-store) items that customers buy online and ship to any Walmart store for pick up (advantage of BOPIS).
Walmart is also predicting strong e-commerce growth of 40% for 2018.
Initial feedback about the Walmart Pickup Tower experience has been very positive, with many consumers shocked at the speed of product pickup and ease of use.
One millennial shopper noted: “I think it’s a great idea for the fast life we’ve evolved to”. A Business Insider reporter tested the Pickup Tower and said: “Upon retrieving our items, we left the store. It was the easiest and most convenient Walmart experience we’ve ever had.”