Tag Archives: Walmart

Walmart VR Home Reinvents Advertising

walmart_virtual_kitchen

A new Walmart experiment breaks not just the fourth wall but eliminates walls altogether as it enables a virtual reality (VR) tour of a home environment where close to 70 identified items are clickable for ‘more information’ and for access to a shopping cart/checkout page. Walmart says the example is an apartment, but the principle applies to a house as well as an apartment.

‘The fourth wall’ is a theatrical device where a player steps or speaks through the invisible front wall separating players from observers. An excellent, albeit exaggerated example cropped up recently a performance of Henry IV at Los Angeles’ Shakespeare Center.

When a member of the audience became ill and needed medical attention, the show was paused. After a few minutes, Tom Hanks, in character as Falstaff, returned to the stage to recapture the audience’s attention.

Come back here,” he yelled to a few “scurvy rogues who stood up from their seats”. “God has decided this play needed a second intermission,””  he said. “Get back here or find this sword and many a dagger placed neatly in the tires of your carriage,” to laughs from the still-seated audience members.

It’s unlikely you will laugh at Walmart’s VR show, but you may gasp in surprise at how cleverly the company and its team of technologists – see FTT here – put a mix of national brands and Walmart own label items in situ (where you’d see/use them at home). This goes well beyond simply telling you, as an ordinary ad does, what things are and what they cost.

In the kitchen, for example, atop a ‘Seville Classics Easy-To-Clean Bamboo Cutting Board’, alongside a paring knife, is a halved apple, with one half quartered. On the same counter there’s a ‘Black+ Decker 2-Slice Extra Wide Slice Toaster, Red/Silver,’ a ‘Color Splash Cutlery Set with Wood Block 6-PC,’ and a ‘Keurig K-Compact Single-Serve K-Cup Pod Coffee Maker’. A clickable yellow circle appears beside each item. When clicked, as well as showing the item, it offers a “click here to buy” link.

Each other area of the home is similarly highlighted with promoted items, and the 3-D VR presentation takes the viewer well beyond the simple product representation of a typical print or TV advertisement.

While this most likely is the first example of this technology you’ve heard, rest assured it won’t be the last. It truly represents a reinvention of advertising as we’ve known it.

The principals it employs are applicable to a number of other situations and environments. Think home remodeling, and how excitingly (and easily) different design element and surface treatments, among other things, can be presented with this technology.

For this and other reasons (see FTT), rather than viewing Walmart as just a behemoth retailer (2,700 or so US stores), the company increasingly needs to be viewed as an innovator, as a disrupter in the retail space. Hopefully you won’t be physically displaced, albeit by only inches, by upcoming Walmart robots tasked to help track out-of-stocks and more in stores.

 

 

Advertisements

Walmart, Amazon Go Head-to-Head on Delivery Services

walmart_super-cropped

Walmart has been working hard, in recent months, to outpace and outdo Amazon as much as the latter has been disrupting many competitors in moving products  — including edible ones – to consumer’ doorsteps.

More and more, Walmart commercials and print ads tout its ‘no membership’ plan for no- or low-cost delivery service to consumers’ doors. The company also is growing its car-side delivery service – where a phoned- or emailed-in order is ready to be picked up at a designated store-side place. A  phone call from one’s car at that place to the store’s delivery department gets the order heading out the door.

Somewhat surprisingly, the delivery folks reportedly don’t mind performing their duties even in ‘off’ weather, according to a couple of them at a Lynchburg VA Walmart. Perhaps they are, justifiably, incentivized by tips.

Both of those services work remarkably well. The to-your-door service works better, perhaps, than Walmart imagined. But then, this is a smart company, and it may have realized a clever opportunity for customers living closest to Neighborhood Markets, the company’s scaled-down store model focused on food and little else: With the company’s entire product catalog available, much beyond what the Neighborhood Markets offer can be home-delivered, at no cost to the consumer. How? By delivering from the nearest full-service Walmart!

That is speculation on our part, but conceptually, it makes sense as a solution to a potentially serious challenge to Walmart.

This program also enables stores to cut inventory (in, say, pet supplies) and still offer a ‘full range’ of, products via the delivery option. In practice, this means that, for example, my local Walmart has been able – possibly coincidentally, possibly because of delivery issues – to leave shelves without some popular cat litters while still offering them through home delivery.

On another front – new patents – Walmart scored some seriously interesting ones recently. And Now U Know, the produce industry newsletter, reported on May 31 that recently approved patents included one for a navigation device for shopping cards, a wearable, tracking device designed to improve    employee productivity (think shelf stockers). And instore inventory trackers that can track when stock needs to be reordered – or shelves need to be restocked. A bit more esoteric is a patent that could  provide instore drone assistance for price verification and in-store navigation.

One or several of these concepts could be implemented in a store near you in the foreseeable future.

Meanwhile, Amazon is boosting membership fees for Prime service – which most users value most for its free delivery feature. The company also recently expanded Prime to Whole Foods customers in select areas. More recently still, according to International Business Times, the company expanded Prime offerings to twelve states beyond the original test area around Ft. Lauderdale FL. A company news release said the expansion affects 121 Whole Foods stores in Colorado, Idaho, Arkansas, Louisiana, northern Nevada, northern California, Texas, Utah, and Kansas – as well as the Missouri side of Kansas City.

The company says Prime discounts also are now in place at Whole Foods’ Market 365 stores around the country. That Whole Foods sub-brand was launched in 2015, IBT noted.

 

Food prices down? Fine, for now; But they’re market-driven, and winter’s coming

meal kits-1

Supermarkets across the U.S. continue reacting to deflationary market pressures by lowering prices on both commodities and packaged goods. Sometimes one chain or another – think of Walmart – doesn’t do reductions and price fluctuations as smoothly as they could, though.

Walmart, like a lot of major food retailers – it is, after all, America’s largest supermarket company – has been promoting store-wide ‘permanent’ roll-backs in prices for most or all of 2016. What they haven’t been talking about, with good reason, is the fact that the kinds and levels of price changes they institute will hardly negatively affect the company’s bottom line.

Example: Way earlier this year, a 20-oz. (567 g) loaf of their Great Value white bread could be had for $.88. Then, a couple of months later, the price was quietly upped to $.99. It’s since been upped again, to a bit more than one dollar.

(At one point in the late spring, the company seemed to have actually killed that bread brand, as shelves were devoid of it for a couple of weeks or more where I shop, in Central Virginia. But that could have been just another far-too-typical out-of-stock situation – a problem Walmart seemed to be struggling with a lot until recently, when they’ve actually brought back a few brands first appearing to be out-of-stock then totally disappearing.)

Example II: Generic large egg prices fell to an amazing $.88 a dozen in the early summer – in part due to an oversupply situation in the industry. That price held, at ‘my’ Walmart, for close to a month. Then, in an amazingly stupid more, the price was pushed up to $.99 behind promotional signs touting a ‘new low price’! Yep, they still were cheaper than the dollar-plus per dozen price at Food Lion, the only other chain retailer readily available to me. But how dumb do you think your customers are when you tout a higher price as a new ‘low’ one?

(Meanwhile, as consumer demand for ‘cage free’ eggs and chicken has grown, prices at that end of the hen fruit market have moved, and stayed, higher. But As this blog reported on Oct. 21, ‘Cage Free is Far From Trouble Free’, and this is an issue the chicken and egg industry is going to have to deal with.)

Rochester NY-based Wegmans announced a few days ago that it is cutting a bunch of prices across the store, with produce being among the most-positively-affected sections. Other supermarketers across the country have done the same or similar in recent months.

But consumers need to keep one thing in mind: In the 1980’s, a supermarket company named Grand Union – a venerable company with a colorful past – it was probably the first, and one of the few, supermarket operators to employ customer helpers who traversed a then-considered-huge 100,000 sq ft store in central New York state on roller skates – made a series of serious mistakes. One of them, the first or second in a sad series, was to declare that a round of price reductions it was introducing were ‘forever’. If you’re a believer, you may argue that God knows ‘forever’; whether you’re a believer or not, the smallest bit of common sense dictates that no supermarket company can afford to make promises like that.

Long story shortened: A year or so after one of its executives suffered what clearly appeared to be a ‘mob hit’ – his body was never found – this New Jersey-based company went bankrupt.

The ‘forever’ issue was only a symptom, as it turned out: The real cause of the company’s come-down/put-down was a succession of management companies’ desire to fatten their purses at the expense of the golden swan – the layer of the golden eggs.

As a shopper, you can count one thing, and only one thing, where supermarket prices are concerned: They are, and will continue to be, market-driven, both up and down.

While some of your best buys will always be found in your favorite store’s weekly flyer, the very best ones will always be found in your meat department, where items too close to a sell-buy date are marked down – sometimes way down.

But a word of caution: If you seek out that kind of savings, pay close attention to the ‘use or freeze by’ dates. While they are generally generous, in terms of absolute safety, don’t push your luck: Use, or freeze. (Or cook and freeze; The benefit is the roughly the same.)

Cage-Free Is Far From Trouble-Free, Video Shows

cage-free

Still from video released today by Direct Action Everywhere

As consumer pressure has caused an increasing number of food sellers to buy, or make long-term commitments to buy, eggs from chickens not raised in cages, egg-producing farmers have turned to a system known as aviary systems. Such systems, in which barn-housed hens are crowded together outside of cages, the birds’ experience is better, but only slightly better, than their traumatic life in cages, The New York Times reported today (Oct. 21).

Their article initially focused on what investigators from Direct Action Everywhere discovered when they snuck into a barn owned by Pleasant Valley Farms, an egg producer in Farmington, Calif., and a contract egg supplier to Costco. The 783-word article went on to note how the Humane Society of the United States views aviary systems – as an alternative to battery, or caged, ones – and on the findings of researchers in Holland who ranked various types of hen housing for animal welfare on a scale of 0 to 10. They gave aviary systems a 5.8, while cages received a 0 ranking.

A video released Thursday by Direct Action Everywhere, an all-volunteer animal advocacy group,  shows dead birds on the floor and injured hens pecked by other chickens. One bird had a piece of flesh hanging off its beak.

The video focuses on a hen that Direct Action rescued and named Ella. When the organization found her in the cage-free barn, she was struggling to pull herself up and had lost most of her feathers. Her back was covered in feces.

chicken-pecked

“There were birds rotting on the floor, and there was one dead bird that seemed to have lost her head,” said Wayne Hsiung, who helped make the video for the group, which is better known as DxE. “There were birds attacking birds, and the smell was horrible.”

The egg industry has long warned that hens living cage-free in aviary systems will experience higher mortality rates and more disease. Research by the Coalition for Sustainable Egg Supply, which is financed by egg producers and food companies, found “substantially worse” levels of aggression and cannibalism in cage-free systems, also known as aviary systems, compared with caged systems. It has also found more damage to the birds’ sternums.

“Consumers have an idyllic vision of what cage-free farming looks like,” Mr. Hsiung said. “They need to be shown the truth, which is that cage-free is far from humane.”

Yet, partly in response to graphic videos and reports about the conditions of caged chickens, consumers pressured companies from McDonald’s to Walmart and Costco to turn to cage-free eggs. Those companies have rushed to promise buying only cage-free eggs in the years to come, which has pushed egg producers to invest tens of millions of dollars in aviary systems. Many animal rights activists have applauded those commitments.

[An aside: At the Walmart nearest my home, large eggs have recently sold for as little as 89¢ (eighty-nine cents) per dozen.]

Costco said in a statement that the video appeared to involve just one barn out of the many that it uses to supply the eggs sold under its Kirkland brand.

“We have reinspected the barn and other operations of this supplier, and based on these inspections and prior audits, we are comfortable with the animal welfare aspects of the operation,” the company said.

Paul Shapiro, vice president for farm animal protection at the Humane Society of the United States, said that cage-free hen housing was without a doubt better than battery cages, though not without problems.

He noted that an assessment by researchers in the Netherlands that ranked various types of hen housing for animal welfare on a scale of 0 to 10 gave aviary systems a 5.8, while cages were 0. “With companies like Costco,” he said, “it’s better to welcome them for taking the first steps rather than punish them for not taking the last step.”