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Walmart Inc (NYSE:WMT) is adopting the style of the airport in redesigning its stores. It is organizing its stores so that customers can easily find what they need and select and pay. In the redesign, the retailer included larger and new signage to direct the customers to choose the desired products.

Encourages downloading the app

Walmart is encouraging its customers to download the app to their smartphones. The app guides the customers to their desired products in its store, mimicking the app in design.

It facilitates navigating the store, searches for the products, and scan the code at POS and pay using a smartphone. Walmart will introduce the new design to 200 stores in the US by the end of 2020 and plans to extend to 1,000 by the end of next year.

Started redesign process before coronavirus onset

Walmart started the redesign process in 2019, and before the onset of coronavirus crises. The newly designed includes features like contactless payments. For instance, customers can use the app on their smartphones to Scan & Go. It eliminates interaction while others are paying. The retailer redesigned the store, considering the feedback of valued customers.  It may even make some alterations at a later stage considering the response of shoppers.

Takes on Amazon

Walmart is taking on Amazon.com, Inc. (NASDAQ:AMZN) with its digital redesign. In mid-September 2020, the retailer introduced an annual membership plan at $98 – Walmart+ that offers incentives like gas discounts, free shipping on products valued $35, and more, and new payment tools.

Focuses on groceries

Walmart generates half of its sales from groceries. However, it derives lower margins from its primary business – groceries. To enhance its margins, the retailer diversified to include home goods and clothing its product offerings. The retailer rolled out a 55 collection – Free Assembly, the new clothing brand in the price range of $9 and $45.

Walmart’s peers, like Costco, Amazon, and Target, enjoyed success by launching private label clothing brands.

Focuses on high growth business

Walmart entered a pact to divest its Asda to the billionaire Issa brothers for $8.8 billion. However, it paid a higher value to acquire Asda more than 20 years back. It signals the intention of the retailer to focus on high growth businesses.

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