Walmart Expanding Stores: To Deal With Excess Inventory Or Amazon?
This topic is the result of watching a video online that talked about a local Walmart and how it expanded to facilitate the excess inventory problem.
It is a viewpoint that I disagree with.
Here is the video that I mention in the video.
In this video I discuss how it doesnt make sense that Walmart would add 25% to their footprint simply to handle a temporary problem. Instead, I propose what else could be in play.
▶️ 3Speak
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excess inventory is something that affects a lot and if they expand and reach more people it will surely help all that surplus to reach the people who may need it
Every action have two sides, the positive and negative, I hope, theirs should be positive
I don't think they want to just store excess inventory because it will be an expense to them. So I think your idea of a competing delivery service makes sense. However, it will also add in overhead as they don't have an expansive delivery system in place.
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No you are right. Their delivery system is still lacking. However, having excess inventory of pickups makes sense. People order online and can get it same day, brought out to their cars.
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Summary:
Task discusses a video by Economic Ninja, highlighting his disagreement with his views but praises his commentary on the inventory issue faced by retailers due to disruptions in the supply chain. Task elaborates on how Walmart is expanding its stores not to handle excess inventory but to serve as local distribution centers for online orders, a strategy to compete with Amazon. He explains the importance of the last mile delivery in the online retail race.
Detailed Article:
Taskmaster 4450, in this video, critiques Economic Ninja's economic viewpoints while applauding his insights into the inventory challenges experienced by retailers. He acknowledges Economic Ninja as a real estate expert but finds fault in his understanding of how dollars are printed by the Federal Reserve. The focus of the video is on the inventory problem, with Task emphasizing the disruption in the supply chain, causing retailers to accumulate excess stock.
Task delves into Walmart's response to the inventory issue, showcasing how they are expanding their store spaces not to manage excess inventory but to function as strategic fulfillment centers for online orders. This move is part of Walmart's strategy to compete with Amazon in the online retail landscape. By leveraging its extensive network of stores, Walmart aims to provide faster delivery by turning its stores into local distribution hubs.
Furthermore, Taskmaster explains the significance of the last mile delivery in the competition between Walmart and Amazon. He highlights Walmart's advantage of having numerous stores within close proximity to customers, enabling quicker deliveries compared to Amazon's reliance on traditional shipping methods. By utilizing their physical presence as distribution centers, Walmart aims to enhance its online ordering and delivery services, ultimately enhancing its competitiveness in the e-commerce sector.
In conclusion, Taskmaster 4450 invites viewers to share their opinions on whether Walmart's store expansions are primarily for excess inventory storage or to strengthen their position against Amazon by enhancing their local distribution capabilities. The video provides valuable insights into the evolving strategies of retail giants like Walmart in adapting to the changing dynamics of online retail and last-mile delivery challenges.