The digitized world has impacted commerce and the way consumers acquire their products, increasingly directing focus towards e-commerce. Uriel Quintana, Director of Supply Chain Omnichannel Acceleration for Walmart de México y Centroamérica (Walmex), tells T21 that in this journey towards omnichannel (combining physical and digital channels), customer service and their high delivery expectations represent a challenge for companies.
Although Mexico is a country where, even traditionally, its population continues to shop through physical channels, more than half of the people already shop online, with approximately 68 million buyers in 2023, according to Statista estimates, making it crucial for companies to venture into omnichannel.
Therefore, a central part of Walmex’s strategy for several years has been to grow its digital channels, which are becoming increasingly relevant to its business: in the first quarter of 2024, the digital channel accounted for 6.6% of the company’s total sales and grew by 25% compared to the first quarter of 2023.
But how has Walmart faced the challenges posed by omnichannel? The retail giant has developed a strategy based on leveraging all its infrastructure and technology to provide its digital customers with a better experience, especially in delivery.
“We are aware of this flexibility that our customers seek; it is one of the logistical challenges we have been very clear about,” says Uriel Quintana.
Walmart has three digital channels: On Demand, where customers can shop and receive their purchases in minutes; the extended catalog, with products that are generally not in-store; and the marketplace, where sellers complement the customer experience with their products, even breaking borders by bringing products from other countries.
To meet the demand of the digital channel, Walmart has a robust logistical muscle that it has been able to leverage…