Wal-Mart to Offer Discounts for Online Orders Picked Up In-Store

Wal-Mart is fighting back against Amazon.com. The superstore announced this week that it will offer "pick-up discounts" to U.S. customers on items they order online and pick-up in-store. Online orders picked up in-store already qualify for free shipping, and now this added discount may sway even more consumers to use the service — and take market share from Amazon in the process. Marc Lore, head of Wal-Mart's e-commerce operations, told Reuters on Tuesday he expects the move to boost transactions online and improve in-store foot traffic. Starting April 19, Wal-Mart will offer pickup discounts on 10,000 items and on more than 1 million products by June.

Total Retail's Take: The decision to offer discounts to shoppers who buy online and pick up in-store figures to gain more foot traffic for Wal-Mart's extensive brick-and-mortar store network. It also represents the latest move by Lore to challenge Amazon since his company, Jet.com, was acquired by Wal-Mart in August 2016. The move aligns with Wal-Mart CEO Doug McMillion's plan to cut costs (less shipping costs incurred by Wal-Mart) and increase reach. Wal-Mart is wisely trying to leverage its national store footprint — which many would consider an anchor dragging it down — as a convenient and cost-effective fulfillment option for its customers.