Walmart switches up its buying process: report

Walmart will reportedly purchase products by category, rather than by channel.

According to CNBC, following up on an article in the Wall Street Journal, an internal corporate memo sent Tuesday, Feb. 24 indicates Walmart plans to combine the two separate buying teams for its e-commerce site and brick-and-mortar stores into a single unit. The discounter’s goal is reportedly to better align pricing across digital and physical channels.

Buyers will be split into six category-based merchandising teams: apparel, consumables, entertainment, toys and seasonal, food, hardlines, and home. Marc Lore, president and CEO of Walmart e-commerce, and John Furner, president and CEO of Walmart U.S., will retain their jobs. The retailer reportedly does not intend to cut any other positions resulting from this change in buying strategy.

In an email sent to CNBC, a Walmart spokesperson said the retailer is attempting to become more customer-centric in its omnichannel merchandising.

“Our customers see one Walmart, and they expect the same low prices and seamless experience no matter how they choose to shop with us,” Walmart said in the email. “Today we are making changes that put the customer at the center of how we buy and sell merchandise.”

Walmart missed Wall Street expectations on its recent Q4 sales and earnings, as well as its 2021 earnings outlook, although e-commerce sales rose 35% during the quarter, fueled by online grocery.

Read the full article here.