Wal-Mart Stores, Inc. (NYSE:WMT) has been excelling in customer service, and the company has managed to extend that excellence using strategies that attract millennials.
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Though the company’s most competitive business is e-commerce where it competes with the likes of Amazon.com, Inc. (NASDAQ:AMZN), it has been employing strategic efforts to attract millennials who are just starting their careers. A majority of millennials (young adults between 20 and 35 years old) visited Walmart in February. He also added that millennials are more likely to shop at the company’s stores than the rest of the population.
Young adults are at a stage where bargains are very important to them because they are either trying to save to pay off their student debts or their mortgage payments. One official, Steve Bratspies, a Walmart Executive VP, also stated that research indicates a 4.5% rise in Walmart’s market share. He stated that the young adults are focused on value which is one of Walmart’s main agendas.
Millennials are also heavily influenced by their lifestyles and researchers claim that their habits have a significant effect on the global economy. A good example is their preference for services such as Uber, which has led to worries about declining vehicle sales in the automobile industry. Another reason people under that age bracket prefer bargain deals is because they often find themselves struggling to find jobs.
The shopping characteristics of young adults have also been beneficial to the firm because they have allowed Walmart to maintain a good percentage of sales. Other Walmart competitors such as Target Corporation (NYSE:TGT) have also identified the millennials trend and have also started to cash in on it. Some of the major categories that attract young adults include organic foods, products for children, entertainment and pet foods among others.
It is also important to note that millennials are more oriented towards technology, and they therefore make up a large percentage of online shoppers. E-commerce has thus been one of the sectors that have benefited from millennial characteristics, and Walmart has been trying to position itself to reap the benefits.
