Straight Up Take:
- Walmart is shutting down its tech and innovation hub, Store No. 8, as per a recent Wall Street Journal report. This includes cool stuff like in-home delivery service and text/voice shopping.
- Since its launch in 2017, about 300 folks have left Store No. 8 for other internal gigs. The responsibility of dreaming up futuristic crap will now be everyone's job, according to Chief Financial Officer John David Rainey, as per the report.
- Scott Eckert, the senior VP of Store No. 8 (according to his LinkedIn), is heading out of the company, as confirmed by the Wall Street Journal.
Deep Dive:
Walmart Plans to Shut Down Store Number 8
Walmart threw up Store No. 8 back in 2017 to give them a fighting chance against Amazon.
This bad boy focused on health and wellness, sustainability, social commerce, the metaverse, customer experience, loyalty, and decentralized commerce. A spokesperson for Walmart said, "Store No8 was an important early step forward into tech-powered customer solutions which led to innovations that have transformed how customers shop at Walmart."
Store No. 8 functioned as a playground for startups, providing a safe space to experiment and stay ahead of customer and market trends. They operated like self-contained startups with access to Walmart's enterprise scale, according to the company's website.
Walmart's been on the hunt for new revenue streams and has been adopting strategies similar to Amazon and Target, according to analysts. The decision to close Store No. 8 might be a part of this strategy.
The closure happens before Walmart's fourth-quarter and year-end earnings call. Last year, Walmart did better than many retailers, posting Q3 global revenue up 5.2% to $160.8 billion from the previous year. However, customers have shown a bit of caution in their spending, as noted by CFO John David Rainey.
Apart from Scott Eckert, Denise Malloy is also leaving the company, according to the Wall Street Journal. Malloy joined as a senior VP and chief belonging officer in April, an evolution of the company's chief diversity officer position, as she announced in a blog.
Editor's note: This story has been updated with a statement from Walmart.
Behind the Scenes:
Companies often shut down innovation units to cut costs, realign strategy, or because they're not meeting performance expectations. The closure could lead to changes in Walmart's innovation focus, reallocation of resources, and more reliance on external partnerships for innovation. However, without specific details, it's tough to predict the exact impact. These moves are often part of a company's strategic response to economic pressures and changing consumer behaviors.
- The closure of Walmart's innovation hub, Store No. 8, signals a shift in focus, according to Walmart's Chief Financial Officer John David Rainey.
- The decision to close Store No. 8 might be a strategic move by Walmart, as they seek new revenue streams and adopt strategies similar to their competitors.
- Walmart's adoption of these strategies may be influenced by the evolving economy and changes in consumer behavior.
- The closure of Store No. 8 could lead to changes in Walmart's innovation focus, reallocation of resources, and increased reliance on external partnerships.
- The tech and innovation hub, Store No. 8, was established to give Walmart a competitive edge against companies like Amazon.
- Store No. 8 operated as a playground for startups, offering them a safe space to experiment and stay ahead of customer and market trends.
- The closure of Store No. 8, which includes innovative projects like in-home delivery service and text/voice shopping, could potentially impact the retail sector's technological advancements.
- The business world is filled with examples of companies shutting down innovation units due to performance issues, cost-cutting, or strategic realignment.
